The Euro advanced on Thursday as US dollar stood at the back foot and rallied to 1.1840, pressuring barriers at 1.1840/44 (converged 55/30 SMA’s).
Recovery rally sidelines downside risk of testing daily cloud base at 1.1702 after bear-leg from last week’s high at 1.1879 was repeatedly rejected at 1.1730.
Close above 55/30SMA’s will generate bullish signal for further recovery towards 12 Oct high at 1.1879, break of which would trigger stronger bullish acceleration towards daily cloud top at 1.1924.
Setup of daily studies is mixed, with 14d Momentum breaking in the positive territory and supporting further advance.
Heated situation in Catalonia is still seen as key factor for the single currency.
Spain’s central government said it would suspend Catalonia’s autonomy and impose direct rule after Catalan leader ignored the deadline to drop secession campaign and threatened government in Madrid with a formal declaration of independence.
Spanish PM said he would hold a special meeting of the cabinet on Saturday that could trigger the unprecedented move in revoking Catalan independence.
Res: 1.1844; 1.1851; 1.1879; 1.1924
Sup: 1.1800; 1.1767; 1.1730; 1.1702
