Constructive above daily cloud but strong barriers ahead limit advance; ZEW data in focus

The Euro tracks sterling and moved higher in early European session, after narrow range in Asia, with daily cloud top offering solid support (1.1569) and keeping the downside protected.
Conflicting daily techs send mixed signals, as break and close above daily cloud was positive signal, but plethora of daily MA’s marks strong barriers at 1.1607/27 zone and keeps the upside limited for now.
The action of British pound would likely affect Euro, with signals of continuation of recovery leg from 1.1432 seen on sustained break above MA’s barriers, while negative signal could be expected on return into daily cloud.
German / EU ZEW data are in focus today, with both indicators showing negative forecasts (German Oct -12.3 f/c vs -10.6 prev / EU -9.2 f/c vs -7.2 prev).
Releases at / below forecasted level could have negative impact on the single currency, which would soften near-term structure and re-expose the base of near-term congestion at 1.1535, reinforced by 10SMA.

Res: 1.1607; 1.1627; 1.1668; 1.1724
Sup: 1.1569; 1.1545; 1.1535; 1.1518