Bulls return to play and hit new 2023 high
The Euro was sharply up on Wednesday, advancing over 1% until early US session, on weaker dollar and better than expected German economic data, which so far offset fragile risk sentiment on renewed concerns about the US banking sector, after shares of troubled First Republic Bank extended sharp fall into second consecutive day.
Fresh rally returned above 1.10 level and hit new 2023 high today (1.1095), reversing a negative signal from Tuesday’s bearish engulfing, into bullish signal, as bulls fully reversed previous day’s nearly 0.7% drop and on track to form bullish engulfing candlestick pattern today.
Bullish technical studies contribute to brightening near-term outlook, though sustained break above former top at 1.1075 (Apr 14) is needed to signal bullish continuation.
Dips on partial profit-taking after today’s strong bullish acceleration, should stay above psychological 1.10 support (reinforced by rising daily Tenkan-sen) to keep bulls in play.
Break of 1.1075/95 tops would open way for extension of the second leg of larger uptrend from 0.9535 (2022 low) and expose targets at 1.1184 (31 Mar 2022 top) and 1.1223 (Fibo 61.8% of 1.2266/0.9535 downtrend.
Res: 1.1075; 1.1095; 1.1184; 1.1223
Sup: 1.1000; 1.0964; 1.0950; 1.0909