The Euro continues to trend higher for the fifth straight day, with extension of Thursday’s post-ECB 1.2% rally, pressuring key 1.1500 resistance zone (Jan 14 lower top / 200WMA).
The single currency was boosted by more hawkish that expected ECB and change in the central bank’s narrative, while Swiss National Bank’s intervention also helped and lifted euro against Swiss franc.
Bulls emerged above the top of thick daily loud, generating generated fresh positive signal which requires confirmation on today’s close above the cloud.
Daily techs turned to bullish mode, supporting the action, with the pair being on track for the biggest weekly advance since the third week of March 2020, setting scope for further gains.
Caution on overbought stochastic and RSI turning sideways, which warn that bulls may face headwinds at 1.1500 resistance zone and take a breather.
Broken daily cloud top (1.1439) and 100DMA (1.1428) mark solid supports which should ideally hold, but deeper dips cannot be ruled out, with 1.1400/1.1345 supports expected to hold and keep fresh bulls in play.
US non-farm payrolls is key event today, with expectations that job growth slowed in January amid surge in infections in Omicron variant.
Res: 1.1482; 1.1501; 1.1558; 1.1602.
Sup: 1.1430; 1.1400; 1.1345; 1.1329.
