The Euro regained traction and jumped above 1.21 handle in early European trading on Friday, following repeated failure to close below pivotal Fibo support at 1.2068 (23.6% of 0.1704/1.2181 rally) that reduced risk of deeper pullback.
Weaker dollar on fading hopes of US inflation rising faster than expected and possible Fed’s sooner rate hike, revived risk appetite and offered fresh support to the single currency.
Fresh advance needs clear break above 1.2100 barrier (Fibo 38.2% of 1.2181/1.2051 pullback) to generate initial signal of higher low and reversal, which would be confirmed on close above 1.2149 (former top of Apr 29).
The Euro is on course for bearish weekly close that adds to initial signals of six-week rally stall, with overbought weekly stochastic and momentum stuck at the centreline, supporting the notion.
Res: 1.2116, 1.2131, 1.2149, 1.2181.
Sup: 1.2100, 1.2084, 1.2068, 1.2043.
