The Euro regained traction and bounced from Asian low at 1.1655, building hourly higher base and keeping bullish bias in play.
Renewed attempt higher is under way after bulls faced strong headwinds from 1.1730 resistance zone, which resulted in bearish daily candle with long upper shadow on Tuesday.
Return above falling 100SMA (1.1666) is bullish signal, reinforced by attempts to form 5/100SMA bull-cross, for fresh attack at 1.1733 (28 Aug high), break of which would unmask pivotal Fibo barrier at 1.1780 (38.2% retracement of 1.2555/1.1300 descend).
Break here is needed to complete inverse H/S pattern on weekly chart and signal further advance.
Momentum is breaking into positive territory and supporting scenario, along with daily MA’s in bullish confirmation, which also formed multiple bull-crosses. Broken 100SMA marks initial support, followed by converged 10/20SMA’s (1.1634) which are expected to keep the downside protected.
Res: 1.1724, 1.1733, 1.1750, 1.1780
Sup: 1.1666, 1.1634, 1.1616, 1.1601
