FxWirePro: BTC/EUR struggles at 100-DMA support, close below required for further downside

• BTC/EUR struggles at 100-DMA which is offering strong support on the downside.
   
• The pair hit fresh 2-month lows at 7534 before paring losses to close above 100-DMA on Wednesday's trade.
   
• Price action is extending consolidation phase after break below daily Ichimoku cloud, bias lower.
   
• Break below 100-DMA is required for further weakness. Scope then for test of next major support at 78.6% Fib at 7244.
   
• Momentum studies are bearish, Stoch are sharply lower. But are approaching oversold levels so caution advised.
   
• RSI weak below 50 levels and biased lower with room for further downside. We see -ve DMI dominance, ADX is rising which supports current downtrend.
   
• On the flipside, break above 5-DMA could see test of 20-DMA at 11684. 20-DMA breakout invalidates bearish bias.
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Support levels - 9032 (100-DMA), 7244 (78.6% Fib retrace of 4736 to 164557 rally), 6049 (200-DMA)

Resistance levels - 10038 (5-DMA), 10596 (cloud base), 11685 (20-DMA), 12000, 13670 (Dec 27 high)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-BTC-EUR-breaks-below-daily-cloud-eyes-100-DMA-at-8933-good-to-short-rallies-1098224) has hit TP1/2.

Recommendation: Bias lower, watch out for break below 100-DMA for further weakness. Target 7250/ 7000/ 6700.

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