The Euro stands at the front foot in early European trading on Thursday after bulls returned to play and managed to fully recover Wednesday’s fall, sparked by soft tone from ECB President Mario Draghi, who pointed to downbeat economic outlook and stronger dollar after soft US CPI data revived risk mode.
Despite prevailing positive tone on rising momentum, the Euro faces strong headwinds from key barriers at 1.1278/84 zone (converging 20/30 SMA’s / Fibo 38.2% of 1.1448/1.1183) which capped attempts in past two days.
Sustained break here would generate positive signal for extension of recovery from 1.1183 (2 Apr low) towards targets at 1.1318 (55SMA) and 1.1348 (100SMA).
Repeated failure to clear these barriers would revive downside risk and expose lower pivot at 1.1237 (10SMA) loss of which will confirm reversal.
Res: 1.1284, 1.1318, 1.1348, 1.1385
Sup: 1.1270, 1.1257, 1.1237, 1.1210
