EURUSD – recovery pressures daily cloud top for bullish signal on break
The Euro is regaining traction with fresh upside pressuring pivotal barriers at 1.1872/77 (Fibo 38.2% of 1.1961/1.1817 downleg / daily cloud top) after pullback from 1.1961 peak was contained by cloud base.
Reversal pattern is forming on daily chart, following yesterday’s long-legged Doji and fresh acceleration higher today.
Lift above daily cloud is needed to confirm reversal and expose target at 1.1906 (Fibo 61.8% of 1.1961/1.1817) which guards key near-term obstacles at 1.1961/65 (27 Nov peak / Fibo 76.4% of 1.2092/1.1553 descend).
The Euro kept positive near-term sentiment despite downbeat German retail sales data on Thursday and focuses on next releases: German jobs and Eurozone’s inflation data.
Forecasts for German labor sector show no significant changes in November while EU’s inflation is forecasted higher in November which could inflate the single currency.
Firmer signal of completion of corrective phase from 1.1961 would accelerate the pair for test of psychological 1.2000 barrier, with bullish setup of daily studies supporting the notion.
On the downside, broken daily Kijun-sen marks initial support at 1.1836, followed by pivots at 1.1826 (daily cloud base) and 1.1805 (Fibo 38.2% of 1.1553/1.1961 rally) loss of which would generate stronger bearish signal.
Res: 1.1877; 1.1920; 1.1965; 1.2000
Sup: 1.1836; 1.1826; 1.1805; 1.1757