Fresh recovery acceleration cracked psychological 1.10 barrier and pressures pivotal Fibo barrier at 1.1016 (38.2% of 1.1163/1.0925), break of which would generate bullish signal and to positive tone that is developing on formation of reversal pattern on daily chart.
The single currency was inflated by stronger pound on fresh Brexit optimism and weaker dollar on downbeat US manufacturing data that raised concerns about US economy is slowing down.
Better than expected EU / German services PMI data contributed to improved near-term sentiment.
Fresh bulls need close above 1.1016 Fibo barrier to get fresh signal of recovery extension towards targets at 1.1047 (falling 10DMA), 1.1072 (Fibo 61.8%) and 1.1091 (20DMA).
Daily momentum is in steep ascend and stochastic reversed from oversold territory, both supporting the advance.
Caution on failure to close above 1.1016 pivot and return below 1.10 handle which would generate initial signal that bulls might be running out of steam.
Res: 1.1016, 1.1027, 1.1047, 1.1072
Sup: 1.1000, 1.0968, 1.0925, 1.0906
