EURUSD rises to one-week high on renewed risk appetite

The Euro jumped to one-week high against dollar, advancing 0.75% by early US trading on Wednesday, driven by renewed risk appetite.

Fresh bulls emerged after top of rising daily cloud and 200DMA (1.0851/43) contained dips for the fourth consecutive day, leaving a higher base at this zone and generating an initial signal that pullback from 1.1139 (Dec 28 peak) has bottomed.

Renewed strength requires sustained break above 1.0943 pivot (20DMA / Fibo 38.2% of 1.1139/1.0821) to sideline downside risk and open way for attack at key 1.10 resistance zone (Jan 11 lower top / psychological.

Also, repeated weekly close above cracked Fibo support at 1.0875 (Fibo 38.2% retracement of 1.0448/1.1139) would add to the upside prospects.

Only violation of 200DMA / cloud top, would negate and shift near-term focus to the downside.

Res: 1.0943; 1.0967; 1.0980; 1.1000
Sup: 1.0875; 1.0843; 1.0821; 1.0793