Bulls regained traction and eye ZEW data for fresh signals
The Euro regained traction and probes again through pivotal Fibo barrier at 1.1240 (Fibo 38.2% of 1.1448/1.1111, as bulls so far failed three times to close above here) following strong upside rejection on Monday (rally was capped by falling 55SMA at 1.1257).
Near-term structure remains firmly bullish, as momentum extends steep ascend and 5;10;20 SMA’s are in bullish configuration.
Bulls eye strong barriers at 1.1257 (55SMA) and 1.1273 (daily cloud base), despite facing strong headwinds, with sustained break here to open way for 1.13+gains.
Rising 5SMA (1.1219) tracks the advance and marks initial support, followed by converging 10/20SMA’s (1.1205/06) on track to form bull-cross and further support the advance.
German ZEW data (May 5.1 f/c vs 3.1 prev) are eyed for fresh signals.
Res: 1.1257; 1.1263; 1.1273; 1.1300
Sup: 1.1224; 1.1219; 1.1205; 1.1173