EURUSD edged lower in European trading on Wednesday as traders collected some profits after Tuesday’s 1.7% advance (the biggest one-day gain in one year), sparked by bigger than expected drop in US inflation in October, which deflated dollar
Near-term picture is increasingly bullish after Tuesday’s acceleration surged through few key technical barriers, resulting in close well above thick daily Ichimoku cloud and above 50% retracement of 1.1275/1.0448 downtrend.
Bulls are taking a breather and positioning for fresh push higher, with broken 200DMA (1.0802) to ideally contain dips and offer better buying opportunities for extension towards targets at 1.0959/1.1000 (Fibo 61.8% / psychological).
Broken Fibo 38.2% and daily cloud top (1.0764/1.0759 respectively) mark pivotal supports which should hold extended dips and keep near-term bias with bulls.
Res: 1.0887; 1.0945; 1.0959; 1.1000.
Sup: 1.0802; 1.0764; 1.0756; 1.0700.
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