The Euro cracked psychological 1.1300 barrier on jump to one-week high (1.1305) following series of better than expected PMI data from the EU members countries.
Upbeat figures from France, Germany and the Eurozone signal downturn in the economies is easing and manufacturing and services sectors are picking up pace following opening of the after pandemic lockdown.
Also, optimistic tone from the White House regarding overnight’s confusion and high volatility, boost risk sentiment and help the Euro.
Monday’s long bullish candle (the pair advanced 0.7% for the day from 1.1168 correction low) generated initial reversal signal which was boosted by today’s extension higher as the pair probed above 50% retracement of 1.1422/1.1168 pullback.
Daily moving averages returned to full bullish setup and stochastic heads north, but lack of bullish momentum may obstruct recovery. Fresh bulls need close above broken 10DMA (1.1268) to keep focus at the upside for test of next pivotal barriers at 1.1325 (Fibo 61.8% of 1.1422/1.1168) and 1.1353 (16 June high).
Caution on failure to clearly break 10DMA that may weaken near-term structure.
Res: 1.1305, 1.1325, 1.1353, 1.1400
Sup: 1.1268, 1.1233, 1.1211, 1.1168
