- BTC/EUR capped below 5-DMA. The pair is extending grind against 5-DMA.
- A decisive breakout above 5-DMA could see minor upside. We then see scope for test of 55-EMA at 11235.
- Violation at 55-EMA will see test of major trendline at 12500 levels.
- However, technical indicators are in support of more slumps. All major moving averages have turned south.
- Downside seems to be supported by huge volumes. ADX also support downside with -ve DMI dominance.
- On the downside the pair is holding strong support at 100-DMA at 9308. We see resumption of weakness on break below.
- Scope then for test of next major support at 7400 (trendline) ahead of 78.6% Fib at 7244.
Support levels - 9308 (100-DMA), 7244 (78.6% Fib retrace of 4736 to 164557 rally), 6202 (200-DMA)
Resistance levels - 9892 (5-DMA), 10000 (cloud base), 11236 (55-EMA), 12000, 12500 (trendline)
Recommendation: Watch out for break below 100-DMA for further weakness.
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