The Euro extends recovery on Monday, as strong Friday’s rebound (which resulted in close above 10SMA) completed Doji reversal pattern on daily chart. Fresh extension higher broke above significant barriers at 1.1177 (Fibo 61.8% of 1.1215/1.1116 bear-leg) and 1.1180 (converged 20/30SMA’s) but requires daily close above to confirm signal and open way for test of key barriers at 1.1215/19/21 (27 May high/daily cloud base/falling 55SMA). Weaker dollar supports recovery, along with rising momentum, however fresh near-term bulls are expected to face very strong headwinds from 1.1220 resistance zone and only break here would sideline broader bears and allow for stronger recovery.
Res: 1.1189, 1.1215, 1.1121, 1.1252
Sup: 1.1177, 1.1160, 1.1153, 1.1125
