The euro inches higher supported by the ECB’s shift to normalising its monetary policy. The psychological effect of parity had triggered a ‘buy-the-dips’ behaviour. A surge above 1.0200 prompted the short side to cover their positions and turned short-term sentiment around. The bulls further consolidated their gains above 1.0130, paving the way for a sustained rebound. A close above 1.0270 would attract momentum buying and send the single currency to the previous daily support-turned-resistance at (1.0440).
