The Euro accelerates higher on Thursday after broader bears stalled ticks ahead of key support at 1.1300 on Wednesday and fresh weakness of the dollar, accompanied with strong advance of British pound, provide relief to the single currency.
Recovery rally approaches significant barrier at 1.1403 (falling 10SMA) break of which would generate bullish signal for extension towards pivotal double-Fibonacci barrier at 1.1423 (Fibo 23.6% of 1.1815/1.1302 and Fibo 38.2% of 1.1612/1.1302 bear-leg, also the base of falling thick 4-hr cloud).
Sustained break here would sideline immediate bears and signal stronger recovery.
Daily slow stochastic emerges from oversold territory and momentum turns up, supporting scenario.
With empty calendar from the EU today, the Euro will be looking for signals from the BoE MPC meeting and US data and will be focusing Friday’s US jobs report for fresh direction signals.
Res: 1.1403, 1.1423, 1.1465, 1.1499
Sup: 1.1361, 1.1335, 1.1314, 1.1300
