Euro probes again above key 1.10 resistance zone
The Euro probes through key barriers at 1.10 zone on Wednesday additionally boosted by proposal of the European commission for rescue package worth 750 billion euros.
The pair extends Tuesday’s advance (up 0.8% for the day), also driven by renewed risk appetite on hopes of global recovery that deflated dollar.
Fresh probe through key obstacles at 1.1010 (200DMA) and 1.1008/17 (former highs of 1/21 May) after bulls were twice rejected by 200DMA, looks for final break higher that would signal an end of larger range-trading (1.0727/1.1017) since early April.
Improved sentiment and bullish daily studies underpin the action, with close above 200DMA to open initial targets at 1.1065 (50% retracement of 1.1494/1.0635) and 1.11 (round-figure).
Repeated failure to clear 200DMA would keep in play risk of extended range, but bias will remain with bulls as long as the action holds above 100DMA (1.0957).
Res: 1.1065; 1.1100; 1.1147; 1.1166
Sup: 1.1010; 1.0957; 1.0934; 1.0917