Euro rebounds after daily cloud base repeatedly contained dips
The Euro accelerated higher on Wednesday, lifted by stronger than expected growth in China’s manufacturing sector, which pressured dollar, while German regional inflation data added to price growth worries and boost expectations of ECB’s further rate hikes.
Fresh advance emerges after larger bear-leg faced strong headwinds from the base of rising daily Ichimoku cloud, which repeatedly limited attacks and proved to be solid support.
Improving conditions on daily chart (14-d momentum is heading north and approaching the border line of positive territory, stochastic / RSI are in steep ascend and price action broke above initial Fibo barrier at 1.0650 – 23.6% of 1.1032/1.0532)) generate initial positive signal, which looks for verification on extension above falling 20DMA (1.0685) and will be confirmed on break and close above pivotal Fibo barrier at 1.0723 (Fibo 38.2%).
Broken daily Tenkan-sen (1.0627) now offers initial support, guarding more significant cloud base (1.0574).
Res: 1.0704; 1.0723; 1.0782; 1.0803
Sup: 1.0627; 1.0574; 1.0520; 1.0483