Recovery from session low at 1.1109 spiked to the levels near 1.1200 after news that ECB may upgrade risk assessment and possibly talk about ramping up extra stimulus on June 8 meeting, hit the wires. Positive outlook for economic growth that is already biased higher, what ECB chief Draghi has already mentioned in his recent speeches may shift ECB’s policymaker’s view of persisting downside risk and signal possible change in policy stance. The Euro’s rally is now showing signs of running out of steam, as the pair eased quickly from fresh session high at 1.1193 and returned near the mid-point of today’s 1.1109/1.1193 recovery rally. Initial probe above the upper pivot at 1.1181 (10SMA) was so far short-lived and capped by hourly cloud (spanned between 1.1184 and 1.1205), with close above 10SMA needed to generate stronger bullish signal and shift near-term focus higher. However, near-term structure is expected to stay biased higher while the price remains above 1.1145 (hourly 20SMA/near Fibo 61.8% of 1.1109/1.1193 upleg). Otherwise, increased risk of return to 1.1100 pivot and possible break lower would come in play on loss of 1.1145 support.
Res: 1.1181; 1.1193; 1.1207; 1.1234
Sup: 1.1145; 1.1130; 1.1100; 1.1060
