EURUSD extends recovery as fears over Italy ease

The Euro remains firm on Thursday and extends previous day’s 1.07% rally as concerns about political turmoil in Italy ease. Renewed probe above weekly cloud top pressure pivotal barriers at 1.1688 (falling 10SMA) and 1.1695 (Fibo 38.2% of 1.1996/1.1509).
Scope for further recovery exists but requires bullish signal on clear break above 10SMA / Fibo barrier to spark fresh extension higher and expose next barrier at 1.1787 (falling 20SMA. Sentiment is improving, however, overall bearish structure and negative momentum suggest that current move is a positioning for fresh bearish action and extended upticks should be capped under 1.1787/1.1810 (20SMA / Fibo 61.8% of 1.1996/1.1509).
EU CPI data are key event of the European session (May f/c 1.6% vs 1.3% in Apr), with solid number today expected to provide an additional support to the Euro.

Res: 1.1650; 1.1695; 1.1728; 1.1753
Sup: 1.1648; 1.1632; 1.1594; 1.1560