Euro keeps firm tone ahead of key economic events

The Euro stands at the front foot on Monday following Friday’s advance which closed above the cluster of converged daily moving averages (200 / 10 / 100 DMA’s) and formation of bullish engulfing pattern, but bulls continue to face headwinds on approach to pivotal Fibo barrier at 1.0864 (38.2% of 1.1139/1.0695), where recent attacks repeatedly failed.

The first key requirement – close above 200DMA has been fulfilled, with focus shifting on 1.0864 Fibo level, break of which is needed to signal continuation of the bull-leg from 1.0695 (Feb 14 low).

However, traders are expected to be cautious these days and await key economic releases this week – EU services PMI’s and ECB’s rate decision and US labor data for February, which could have strong influence on the currency pair.

Technical picture on daily chart is bullish, as positive momentum continues to strengthen moving averages turned to bullish setup and twist of daily Ichimoku cloud (1.0929) also expected to be magnetic.

Repeated close above 200DMA needed to maintain bullish bias.

Res: 1.0888; 1.0897; 1.0945; 1.0969
Sup: 1.0825; 1.0800; 1.0762; 1.0732