- BTC/EUR has seen multiple rejections at 20-DMA which raises scope for more downside in the pair.
- On the daily charts 20-DMA has turned south, RSI is flat around 50 levels and stochs are approaching overbought levels.
- Technical indicators on 1 hourly charts are turning bearish. We see -ve DMI dominance and ADX is starting to support trend lower.
- We see strong trendline support at 12230 levels, and foresee weakness on break below.
- Scope then for test of 50-DMA at 11072 levels. Violation there needed for further downside.
- On the flipside, breakout at 20-DMA at 12740 negates bearish bias.
Support Levels: 12262 (23.6% Fib retrace of 10200 to 12900 rally), 12244 (5-DMA), 11788 (1H 200 SMA)
Resistance Levels: 12738 (20-DMA), 12900 (Jan 4 high), 13000
Recommendation: Good to go short on break below 12230, SL: 12750, TP: 12000/ 11800/ 11550/ 11100.
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