The Euro rose in Asian session on Wednesday, generating initial signal that shallow three-day pullback from new 2 ½ year high at 1.2177 may be over.
Larger uptrend remains intact, with strong bullish momentum on daily and weekly charts, supporting bullish continuation scenario.
Near-term action is also underpinned by positive fundamentals as recent upbeat EU and German data signal that economic recovery is gaining pace.
Bulls are riding on third wave of five-wave cycle from 1.1602 (4 Nov low) and eye its FE 138.2% (1.2185), break of which would open way towards 1.2261 (FE 161.8%) and 1.2300 (round-figure).
Monday’s low (1.2078) offers initial support ahead of rising 10DMA (1.2058) which tracks the advance since early Nov and guards pivotal 1.20 support.
Res: 1.2147, 1.2177, 1.2185, 1.2261.
Sup: 1.2100, 1.2078, 1.2058, 1.2041.
