Euro attempts again to emerge from multi-day congestion
The Euro advanced in early Monday’s trading, up 0.5% since opening in Asia, boosted by fresh risk appetite and optimism about economic recovery, following a pickup in German factory orders (May 10.4% from -26.2% in Apr).
Fresh acceleration higher broke above trendline resistance (1.1277) and cracked psychological 1.1300 barrier, pressuring Thursday’s spike high at 1.1302.
Bulls look for eventual break above 7-day congestion (range top lays at 1.1302) to open way for recovery extension towards 1.1325 (Fibo 61.8% of 1.1422/1.1168) and 1.1348 (23 June high).
Improved daily studies (MA’s returned to bullish setup, momentum is breaking into positive territory) support bullish scenario, which needs today’s close above 1.1302 for confirmation.
Caution on repeated failure to break higher that would signal extended range-trading.
Broken Fibo 38.2% / 20DMA mark solid supports at 1.1265/61 which need to hold and keep bullish bias.
Res: 1.1302; 1.1325; 1.1348; 1.1362
Sup: 1.1265; 1.1240; 1.1227; 1.1184