Bears are deflated by fresh risk aversion and taking a breather above key support zone
The Euro moved higher in Asia/early Europe on Thursday, following previous day’s dip that cracked key Fibo support at 1.0993 and registered marginal close below psychological 1.10 support, but failing to clearly break lower.
Fresh risk aversion in the market was triggered by on US Hong Kong bill that supports protesters and threatens of negative impact on US/China trade talks.
The dollar was deflated after President Trump signed the documents and safe havens benefited.
Fresh advance is supported by rising daily momentum (which is attacking the centerline and looking for break into positive territory) and stochastic reversing from oversold zone.
Extension above broken bull-trendline (1.1024) and daily cloud base (1.1034) is the minimum requirement for stronger recovery signal.
Daily Tenkan-sen lays at 1.1044 and guards next pivotal barrier at 1.1055 (daily cloud top / Fibo 61.8% of 1.1096/1.0992), break of which is needed to sideline bears and expose key obstacles at 1.1082/96 (daily Kijun-sen / 21 Nov high).
Caution on recovery stall under daily cloud as larger downtrend off 1.1179/75 double-top is still in play and sees risk of renewed attack at key 1.1000/1.0989 support zone.
Res: 1.1024; 1.1034; 1.1044; 1.1055
Sup: 1.1000; 1.0989; 1.0949; 1.0940