EURUSD regained traction early Thursday and reduced downside risk, as two-day pullback was strongly rejected on Wednesday.
Technical studies are mixed on daily chart as bullish momentum is fading while moving averages remain in bullish configuration, lacking clearer direction signal, although overall picture is bullish.
German Nov PMI’s came above forecasts and lifted the single currency further, offsetting weaker than expected French PMI figures.
Markets await release of EU PMI, which could provide further boost if in line with or above consensus.
Near-term action is held within two Fibo levels, 1.0862 (broken 50% of 1.1275/1.0448, reinforced by rising 10DMA) and 1.0959 (cracked 61.8%) with firm break on either side to generate fresh direction signal.
Loss of 1.0862 pivot to signal deeper correction and expose targets at 1.0808 (200DMA) and 1.0795 (weekly cloud base).
Conversely, bulls may accelerate beyond psychological 1.10 level on sustained break above 1.0959 Fibo barrier.
Caution on expected lower volumes due to US Thanksgiving Day holiday.
Res: 1.0959; 1.1000; 1.1065; 1.1080.
Sup: 1.0882; 1.0862; 1.0808; 1.0813.
