Break of key barriers at 1.1800 zone to signal upside breakout
The Euro regained traction after bulls paused on Wednesday, as robust US data and renewed hopes for US fiscal stimulus boosted risk sentiment.
Bulls pressure initial resistances at 1.1764/73 (Fibo 38.2% of 1.2011/1.1612 pullback / converged 20/55DMA’s) and eye next pivots at 1.1798/1.1811 (daily cloud top / daily Kijun-sen).
Firm break above 1.1800 zone would open way for stronger recovery and neutralize existing downside risk on weak daily momentum and bearish monthly close (long red monthly candle formed bearish engulfing pattern, but bears managed to clos above monthly cloud base and keep in play hopes for recovery).
Broken 10DMA (1.1714) and round-figure 1.1700 (former range floor) offer solid support and keep positive near-term bias.
Res: 1.1764; 1.1773; 1.1800; 1.1858
Sup: 1.1714; 1.1700; 1.1659; 1.1612