Bulls keep traction and eye parity
The Euro remains at the front foot on Tuesday and rises to the highest since Oct 6, as better than expected German Ifo data added to positive near-term sentiment.
Bulls hold for the fourth straight day, with long lower shadows on daily candlesticks in past two days, signaling that the downside was so far well protected.
Probe through Fibo barrier at 0.9912 (76.4% of 0.9999/0.9631 bear-leg) would open way for extension towards key resistance at parity level (also Oct monthly high), with possible break here to generate strong bullish signal.
The single currency benefits from weaker dollar on signals that Fed is likely to consider slowing the pace of rate hikes, though the target of 5% by the end of Q1 2023 remains in play.
Technical picture on daily chart is improving as rising 14-d momentum is entering positive territory and north-heading Tenkan-sen is on track to form a bull-cross with Kijun-sen.
Today’s close above 0.9912 Fibo level and falling 55 DMA ( 0.9925) is needed to confirm bullish stance for attack at parity.
Today’s low at 0.9848 (reinforced by 5DMA) marks next support, guarding pivots at 0.9800 zone.
Res: 0.9959; 1.0000; 1.0050; 1.0086
Sup: 0.9875; 0.9848; 0.9815; 0.9789