The Euro moves higher in European trading on Monday, boosted by better than expected German Ifo data (business climate rose to 99.6 in Mar vs 98.7 f/c / Feb) that partially offsets shock from last Friday’s downbeat PMI numbers.
Traders also booked profits from Thu/Fri 1.1% fall which emerged from last week’s bull-trap pattern, formed above daily cloud.
Fresh risk mode works against Euro with Friday’s close below 30SMA (1.1321) being negative signal.
Fresh bears also cracked key Fibo support at 1.1280 (61.8% of 1.1176/1.1448) on Friday, but close below is needed to confirm bearish stance for further weakness and test of 1.1240 (Fibo 76.4%).
Current recovery is seen as positioning for fresh downside with initial barriers at 1.1321/23 (converged 20/30SMA’s); 1.1334 (10SMA) and 1.1344 (broken Fibo 38.2%) which needs to cap upticks and keep bears in play.
Res: 1.1321; 1.1334; 1.1344; 1.1364
Sup: 1.1289; 1.1280; 1.1240; 1.1200
