The Euro maintains positive tone and probes again into daily cloud, after cloud base was cracked on Tuesday’s strong rally, which confirmed break out of four-day congestion and signaled continuation of recovery leg from 1.1234 (15 Feb low).
The pair showed little reaction on mixed EU data but maintains strong bullish momentum.
Tuesday’s close above 55SMA was bullish signal, with bulls expected to be additionally attracted by thinning daily cloud which twists later this week. Bulls need break above pivotal Fibo barrier at 1.1407 (Fibo 61.8% of 1.1514/1.1234) to generate fresh bullish signal for recovery extension towards trendline resistance at 1.1461 (bear-trendline drawn off 1.1815, 24 Sep high) which would unmask falling 200SMA (1.1512).
Broken 30SMA (1.1363) needs to contain extended dips and keep bulls in play.
Res: 1.1407, 1.1448, 1.1461, 1.1512
Sup: 1.1382, 1.1363, 1.1337, 1.1316
