Close above important Fibo barrier at 117.62 to signal further recovery
The cross holds firm bullish tone on Friday and probes again through important Fibo barrier at 117.62 (38.2% of 121.14/115.44 fall) after Thursday’s 1.2% rally (the biggest one-day advance since 13 Mar), inspired by month-end flows, failed to clearly break higher.
Steep recovery extends into third day and rapidly gaining momentum that could help in breaking and closing above 117.62 pivot.
Additional support comes from formation of bullish engulfing pattern on weekly chart, with Euro being strongly underpinned by rising risk sentiment.
Clear break would open way for recovery extension towards targets at 118.29 (50% of 121.14/115.44 / 10WMA) and 118.43 (55DMA).
Broken 20DMA (117.17) offers solid support which needs to hold and maintain bullish bias, but repeated failure to close above 117.62 would be initial signal that bulls are running out of steam.
Res: 117.93; 118.29; 118.43; 118.73
Sup: 117.17; 117.00; 116.79; 116.55