Euro stands at the front foot ahead of German data, but weak momentum requires caution
The Euro holds positive tone for the third consecutive day and trading above 1.13 mark in early Wednesday, following Tuesday’s close above this barrier.
Risk sentiment on rising optimism of global economic recovery, talks about further US stimulus that keeps the dollar under pressure, continue to support the single currency.
Markets focus on release of German Ifo data, as business sentiment is expected to further improve (Jun 85.0 f/c vs May 79.5) and additionally boost near-term action.
Recovery already cracked Fibo 61.8% retracement of 1.1422/1.1168 pullback and looking for clear break that would open way towards June’s peak at 1.1422 (10 Jun).
Daily MA’s are in bullish configuration and stochastic / RSI head north, but lack of momentum is evident and may obstruct bulls.
Repeated close above 1.1300 handle is needed to keep near-term bias with bulls, while break lower would soften the tone and risk test of key support at 1.1265 (10DMA / broken Fibo 38.2% of 1.1422/1.1168).
Res: 1.1325; 1.1353; 1.1400; 1.1422
Sup: 1.1300; 1.1265; 1.1233; 1.1200