The Euro is holding within a narrow range on Friday but keeps slight bullish bias on strong positive momentum and the pair being on track for the first bullish weekly close in five weeks.
On the other hand, multiple failure to clear 200DMA barrier (1.0824) and Thursday’s strong upside rejection which left daily candle with long upper shadow, weighs on near-term action.
Improved German business climate in February (Ifo report) and Q4 GDP in line with expectations, contribute to supportive factors for the single currency.
Markets will focus on today’s close with fresh bullish signal expected on eventual close above 200DMA which will open way for retest of barriers at 1.0864/74 (Fibo 38.2% of 1.1139/1.0695 / 55DMA) and possibly spark stronger bullish acceleration on clear break higher.
Caution on repeated failure at 200DMA which will initially signal prolonged sideways mode while the price action stays above daily Tenkan-sen (1.0791).
Res: 1.0864; 1.0874; 1.0897; 1.0917.
Sup: 1.0814; 1.0791; 1.0768; 1.0740.
