The Euro was up 0.75% on Tuesday on strong bullish acceleration after solid EU data. The rally peaked at 1.1764, the highest since 26 Oct, denting Fibo 61.8% pivot at 1.1755 and shifting focus towards 55SMA (1.1796) and daily cloud base (1.1815). Bulls are taking a breather under 1.1764 high as better than expected US PPI data temporarily inflated the greenback. Pullback was so far shallow and holding well above initial support at 1.1731 (100SMA), keeping near-term bullish bias intact. We expect extended dips to remain above 1.1700 handle (ideally above rising 100SMA) before resuming higher. With no further data scheduled today, focus turns towards tomorrow’s release of US CPI/Retail Sales which could influence Euro’s near-term action.
Res: 1.1770; 1.1796; 1.1815; 1.1836
Sup: 1.1731; 1.1716; 1.1685; 1.1661
