EURUSD – recovery needs lift above daily cloud for confirmation; EU data eyed for fresh signal
The Euro bounced on Wednesday after two-day pullback found ground at 1.1826, contained by strong support, provided by daily cloud base and reinforced by rising 10SMA.
Fresh rally eyes pivotal barrier at 1.1877 (daily cloud base) break of which to generate stronger reversal signal and mark higher low at 1.1826 for renewed attempts towards targets at 1.1965 and 1.2000.
Short-term structure remains bullish and favors fresh upside on sustained break above daily cloud.
Batch of confidence data from the Eurozone and German inflation numbers are in focus today and expected to generate fresh direction signals. Better than expected releases are needed to confirm positive sentiment, while weak numbers today would put the single currency under fresh pressure and risk deeper pullback.
Res: 1.1877; 1.1920; 1.1965; 1.2000
Sup: 1.1826; 1.1805; 1.1778; 1.1757