EURTRY hit record highs recently as it pushed through the €9.30 barrier.
An ascension from the beginning of the year saw a slight pullback towards the end of September. This led to further upside with continued bullish behaviour and prices moving far away from the Ichimoku cloud.
However, a recent bearish divergence noted on the momentum indicator sees that bulls could become exhausted. A pullback towards the recent false break at 9.159 could be the first target.
Further weakness on the pair could ensue, should prices move closer to the cloud. The next target would then be towards the €8 region, which is a confluence of the other previous false break.
The intraday analysis shows clearer resistance at the recent highs. The downside 9.328/8.731 Fibonacci leg points to 78.6% as the next target.
The bearish divergence previously witnessed is now more accentuated as the Ichimoku cloud edges closer. The €9.20 level will be closely followed by €9.10 if bears become more apparent.
A fall below €9 is not likely in the near-term. However, should this level be broken, then monthly lows could be expected.