Recovery rally from last Friday’s low at 1.1669 extends through converged 20/55SMA’s and emerges above 4-hr cloud, on acceleration after break above pivot at 1.1830 (Fibo 38.2% of 1.2092/1.1669 descend/former high of 29 Sep). Bulls eye daily Kijun-sen at 1.1880 (also 50% retracement), which lies just ahead of next pivotal barrier at 1.1894 (daily cloud top). The pair needs close above daily cloud to confirm reversal. Weaker dollar and easing tensions over Catalonia work in favor of the single currency. Broken Fibo 38.2% point at 1.1830 now acts as good support, followed by daily low at 1.1795. Return below daily Tenkan-sen at 1.1763 will be bearish. Near-term focus shifts towards the minutes of Fed’s September meeting for fresh signals, with high expectations in the markets for rate hike in Fed’s December policy meeting.
Res: 1.1880; 1.1893; 1.1930; 1.1992
Sup: 1.1830; 1.1795; 1.1763; 1.1737
