The Euro maintains firm tone at the beginning of the week and attempts to extend gains from last Friday, when US jobs data sent the greenback lower, as slower than expected wage growth overshadowed strong non-farm payrolls data which exceeded forecasts.
Fresh advance in early Monday’s trading penetrated thick daily cloud (cloud base lays at 1.1747) and cracked next strong barrier at 1.1775 (falling 55SMA) on probe above Friday’s high at 1.1767 (also Fibo 76.4% of 1.1848/1.1508 bear-leg).
Strong bullish signal was generated on Friday’s close above key barrier at 1.1718 (previous high of 26 June / Fibo 61.8% of 1.1848/1.1508), with daily MA’s (10, 20, 30) in bullish setup and strong bullish momentum, supporting for further advance.
Bulls eye key barriers at 1.1840/48 (07 / 14 June double-top, reinforced by Fibo 38.2% of larger 1.2413/1.1508 fall), break of which is needed to confirm base at 1.1510 zone and spark stronger recovery.
Bulls may show stronger hesitation at 55 SMA barrier as slow stochastic entered overbought territory on daily chart. Corrective dips are expected to find ground above strong support at 1.1650 zone (10/20SMA bull cross) to offer better opportunities for fresh longs.
Broken cloud base (1.1747) marks initial support followed by former pivotal barrier at 1.1718).
Res: 1.1779, 1.1809, 1.1840, 1.1854
Sup: 1.1747, 1.1718, 1.1678, 1.1650
