Euro keeps firm tone on weaker dollar, improved economic data
The Euro extends higher in early Thursday as the risk sentiment was boosted by comments from Fed Powell who signaled a lower pace of rate hikes in the near future.
The single currency keeps firm tone following Wednesday’s 0.76% advance, underpinned by stronger than expected easing in inflation and slight improvement Eurozone manufacturing sector.
Daily studies are mixed, with bullish signal generated on Wednesday’s break above converged 10/200/100 DMA’s, countered by recent long upper shadows on daily candles and strong fall of bullish momentum.
On the other hand, large bullish monthly candle of November underpins and brightens the outlook.
Bulls eye immediate barriers at 1.0481/96 (Nov 15/28 spile highs, reinforced by upper 20-week Bollinger band, which guards key resistance at 1.0578 (Fibo 38.2% of 1.2266/0.9535), with break here to generate reversal signal.
Repeated close above 200DMA (1.0369) to keep immediate bulls in play, though larger bullish structure would remain intact while the action stays above 1.0281/22 (rising 20DMA / Nov 21 higher low).
Res: 1.0496; 1.0578; 1.0620; 1.0700
Sup: 1.0393; 1.0369; 1.0281; 1.0222