Euro remains elevated by renewed risk appetite
Improved risk sentiment keeps the euro supported for the second straight day, adding to signals that 1.0930/1.0713 correction might be over, as fresh advance broke above 50% retracement of the pullback.
Daily studies maintain strong positive momentum and moving averages in bullish setup created several bull-crosses, contributing to positive near-term signals.
Bulls need close above 1.0821/38 (50% retracement of 1.0930/1.0713 / Mar 24 high / Fibo 61.8% of 1.1032/1.0516) to confirm signal and keep near-term bullish stance for further advance towards 1.0930 (Mar 23 spike high) and falling 100WMA (1.0971).
Caution on Wednesday’s daily cloud twist which could be magnetic and obstruct the latest advance, though if the price manages to stay above cloud, this would support the action, as the cloud thickens after the twist and will additionally underpin.
Today calendar is light, with focus on speech of ECB’s President Lagarde and US consumer confidence.
Res: 1.0838; 1.0876; 1.0930; 1.1000
Sup: 1.0778; 1.0740; 1.0713; 1.0687