FxWirePro: ETH/EUR holds cloud base support at 442, good to go short on break below

• ETH/EUR finds strong support at daily cloud base at 442 levels.
   
• The pair has edged higher from session lows at 442 to currently trade at 461 levels.
   
• Technical indicators are highly bearish. We see scope for further weakness on break below cloud.
   
• Momentum studies are highly bearish. We see -ve DMI dominance and ADX is above 25 and rising supporting the trend lower.
   
• Price action is below major EMAs on the daily chart and upside remains capped at 5-DMA at 493.
   
• Next major bear target lies at 420 (Dec 22 lows) ahead of 371 (78.6% Fib).
   
• On the flipside, break above 5-DMA will see upside till 100-DMA at 524. Violation at 100-DMA negates bearish bias.

Support levels - 442 (cloud base), 440 (61.8% Fib), 420 (Dec 22 lows), 371 (78.6% Fib)

Resistance levels - 488 (50% Fib), 493 (5-DMA), 524 (100-DMA)

Recommendation: Good to go short on break below daily cloud, SL: 490, TP: 420/ 400/ 375

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