Euro extends advance as tensions in banking sector continue to ease
The Euro extends steep recovery into third straight day, lifted by renewed risk appetite on easing fears of deeper crisis in banking sector.
Strong bullish acceleration has so far retraced over 61.8% of last week’s sharp two-day pullback (1.0930/1.0713), contributing to signs of a healthy correction (contained by rising 10DMA) preceding fresh advance.
The daily chart structure remains firmly bullish (north-heading moving averages track the rise of price and form a multiple bull-crosses; positive momentum is strong) that keeps near-term focus shifted to the upside.
Also, no significant impact was seen from today’s daily cloud twist, which is usually magnetic, keeping fresh bulls so far unharmed.
Broken 50% retracement level (1.0821) is reinforced by 5DMA and marks solid support which should ideally keep the downside protected and maintain bullish bias for further gains.
Fibo level at 1.0878 (76.4% retracement of 1.0930/1.0713) marks immediate target, ahead of key near-term barriers at 1.0930 (Mar 23 peak) and 1.1000 (psychological).
Res: 1.0862; 1.0878; 1.0912; 1.0930
Sup: 1.0821; 1.0796; 1.0757; 1.0737