The Euro remains constructive in early Thursday’s trading and cracked triangle resistance (1.1747) in extension of Wednesday’s advance. Positive tone from Trump-Juncker meeting, as US and EU agreed to work together on zero tariffs, sidelined concerns about trade war and pushed the greenback lower. Wednesday’s penetration and close within thick daily cloud was bullish signal, which was reinforced by close above pivotal 1.1718 barrier (Fibo 61.8% of 1.1848/1.1508 descend). Bullish setup of daily MA’s is supportive but negatively aligned momentum and stochastic approaching overbought territory, warn of recovery stall. Clear break above triangle resistance is needed to generate bullish signal for extension towards key short-term barriers at 1.1790 (09 July high) and 1.1848 (14 July peak). Otherwise, the pair may hold in extended sideways mode, with dips to be contained by 10SMA (1.1689) to keep near-term bullish bias. ECB policy meeting is the key event today, with focus on Mario Draghi’s comments about key points: inflation, growth, bond purchases and possible hints about rate change before the summer 2019, with any hawkish signal from the ECB, expected to further boost the single currency.
Res: 1.1742, 1.1750, 1.1790, 1.1840
Sup: 1.1720, 1.1698, 1.1687, 1.1663
