The Euro retested 1.2000 barrier in early European trading on Tuesday, hitting one-week high, as fresh acceleration higher eventually broke above Tenkan-sen barrier which limited upside attempts in past four days.
Fresh bulls also dented 1.1995 barrier (Fibo 61.8% of 1.2092/1.1837 pullback) and generated another bullish signal, with sustained break higher needed for confirmation.
Further upside action may result in retest of recent trend high at 1.2092 (the highest since Dec 2014), with stretch towards 1.2166 (Fibo 50% of larger 1.3992/1.0340 descend), seen on break higher.
Broken daily Tenkan-sen now acts as solid support at 1.1964, followed by top of hourly cloud at 1.1942 (cloud is spanned between 1.1942/12 and underpins near-term action).
ZEW data are key releases from the European session today. German economic sentiment is expected to rise in September, according to the forecast at 12.5 vs 10.0 in Aug, with Eurozone economic sentiment expected at 32.4 vs 29.3 in Aug, which could lend further support to the single currency on positive release.
Res: 1.2006, 1.2029, 1.2070, 1.2092
Sup: 1.1964, 1.1942, 1.1912, 1.1877
