The Euro jumped from tight overnight range on comments from ECB’s President Mario Draghi, who pointed at strengthening and broadening recovery in the Eurozone. Draghi also said that the EU economy still needs considerable monetary support from the central bank even as the economy recovers steadily and inflation picks up.
Fresh bullish acceleration eventually broke above 20SMA which caped upside attempts in past two days.
Today’s close above 20SMA would be bullish signal and may re-attract 1.1300 target zone, below which repeated upside rejections occurred in early June.
Broken 20SMA now acts as initial support at 1.1203, followed by lower pivot at 1.1177 (10SMA), loss of which would generate stronger bearish signal.
Res: 1.1254, 1.1285, 1.1295, 1.1314
Sup: 1.1219, 1.1203, 1.1177, 1.1145
