The Euro remains bid after the first round of French election and fragile tone of the dollar, as US President Trump did not give specific details about his highly anticipated tax reform report yesterday.
The single currency is consolidating under week’s high at 1.0948, posted on Tuesday and retested yesterday, but unable to break higher so far.
Two strong barriers lay in this zone, Fibonacci 61.8% of 1.1298/1.0339 descend at 1.0931 and falling weekly 55SMA (currently at 1.0935), break of which is needed to signal resumption of bull-leg from 1.0568 and expose psychological 1.1000 barrier, reinforced by weekly 100SMA.
The pair will remain bullish while above 200SMA (currently at 1.0834) with extended dips on overbought daily slow stochastic expected to find support here and keep bullish stance intact.
Today’s focus is on ECB policy meeting. The central bank is expected to at least outline plans for normalizing policy on positive economic outlook, backed by brighter business and consumer sentiment, stronger manufacturing data and political environment that showed signs of stabilizing after the first round of French election.
Res: 1.0935, 1.0948, 1.1000, 1.1067
Sup: 1.0894, 1.0854, 1.0834, 1.0819
