The Euro advances at the beginning of the week, in extension of last week’s rally (the biggest weekly rise since Nov), gaining additional support from weaker dollar, hit by soft US data on Friday, which raised concerns about dovish stance from Fed at the end of two-day policy meeting on Wednesday.
Fresh bullish acceleration probes above tops of last three days and eyes strong barriers at 1.1364/72 (converged 55/100SMA’s/50% retracement of 1.1569.1.1176).
Daily cloud twists today at 1.1418 and attracts bulls, with fresh boost of positive sentiment on negative expectations from Fed, adding to bullish near-term outlook.
On the other side, negative momentum continues to rise on daily chart, while slow stochastic crests in overbought territory and warn that bulls may run out of steam, ahead of key barriers.
Converged 20/30SMA’s (1.1318) mark solid support which is expected hold and maintain bullish bias. Conversely, break and close below would weaken near-term structure and risk dip towards next pivotal support at 1.1288 (10SMA).
Res: 1.1350, 1.1364, 1.1372, 1.1382
Sup: 1.1338, 1.1318, 1.1288, 1.1263
