Extended recovery eyes pivotal barrier at 1.0767
The Euro keeps firm tone in early Tuesday and rises above 1.07 mark, in extension of Monday’s 1.2% rally.
Fresh risk appetite and hawkish comments from the ECB underpin recovery, but so far positive fundamental factor is weighed by escalating tensions between the US and China.
On the other side, technical studies on daily chart are mixed as bullish momentum started to fade and stochastic is overbought, while moving averages (10,20,30) are in bullish setup and offer support.
Recovery faces pivotal barrier at 1.0767 (50% of 1.1184/1.0349 bear-leg / weekly Tenkan-sen) break of which would keep bulls in play for stronger correction.
Traders focus on the economic data today, with German / EU PMI’s being the top releases in European session, while US PMI’s and the speech of Fed Chair Powell will be in focus in the US session.
Res: 1.0767; 1.0786; 1.0800; 1.0865
Sup: 1.0700; 1.0668; 1.0621; 1.0546