Consolidation to precede final push towards 1.1422 target
The Euro pulls back in early European trading on Thursday after probe above Fibo barrier at 1.1362 (76.4% of 1.1422/1.1168).
The single currency is inflated by risk sentiment and generated positive signal on Wednesday’s eventual close above pivotal Fibo level at 1.1325 (61.8%) and formation of bullish engulfing pattern (Tue/Wed).
Cracking the last obstacle (1.1362) and close above this level opens way towards 10 June peak at 1.1422, violation of which could spark acceleration towards 1.1500 zone (2020 high lays at 1.1494, posted on 9 Mar).
Current easing is seen as positioning ahead of fresh push higher and signaled by overbought 4-hr studies.
Broken Fibo barrier at 1.1325 should ideally contain, but deeper dips towards 1.1295 (daily Kijun-sen / broken 50% retracement level) cannot be ruled out.
Solid German exports data, released this morning, add to positive tone, with markets focusing US weekly jobless claims for fresh signals.
Res: 1.1370; 1.1400; 1.1422; 1.1457
Sup: 1.1325; 1.1295; 1.1265; 1.1250