The Euro extends recovery from Friday’s spike low at 1.1613 into third straight day and probes again through strong barriers at 1.1716/29, provided by base of thick daily cloud / falling 55SMA.
Weaker dollar maintains positive Euro’s near-term tone, with north-heading momentum / slow stochastic and daily MA’s (10,20,30) turning into bullish configuration and supporting scenario.
Penetration and close within daily cloud would generate bullish signal for extension towards next strong barrier at 1.1790 (09 July high), which guards key barriers at 1.1848/54 (14 June high / Fibo 38.2% of 1.2413/1.1908 fall).
Testimony of Fed chief Powell (today & Wednesday) is the event and is closely watched as investors expect signals for Fed’s further rate hikes, which would boost the greenback and send the Euro lower.
Conversely, current uptrend could extend further on dovish tone from Powell.
Res: 1.1762, 1.1790, 1.1848, 1.1854
Sup: 1.1729, 1.1716, 1.1701, 1.1679
