Bulls regained traction on Thursday and fade downside risk that emerged after post-Fed nearly 0.5% drop on Wednesday.
Fresh rise in German producer prices (the biggest increase in nearly a decade) added to Euro’s positive sentiment, underpinning recovery from Wednesday’s short-lived drop.
Daily studies show moving averages in full bullish setup and rising positive momentum that supports the action, but sideways-moving stochastic at the overbought territory borderline warns that the rally may stay paused for extended consolidation.
Bulls look for a weekly close above broken Fibo barrier at 1.2197 (76.4% of 1.2349/1.1704) to confirm a positive signal for continuation of larger uptrend.
Rising 5DMA (which contained Wednesday’s dip and holds today’s action) offers immediate support at 1.2177, followed by ascending 10DMA (1.2147) and trendline support (1.2117).
Extended dips should stay above the trendline to keep larger bulls intact.
Res: 1.2244, 1.2300, 1.2349, 1.2413.
Sup: 1.2177, 1.2147, 1.2110, 1.2102.
