Extended recovery penetrates daily cloud and focuses key barriers
The Euro extends recovery into fifth straight day, with bullish signal generated on Wednesday’s close above 1.0838 Fibo barrier (23.6% of 1.1494/1.0635).
Fresh advance cracks the base of thick daily cloud (spanned between 1.0930 and 1.1008) reinforced by daily Tenkan-sen.
Penetration into daily cloud would expose next pivotal Fibo barrier at 1.0963 (38.2% retracement), break of which would generate initial reversal signal which will require confirmation on close above 1.1000/08 (psychological / cloud top).
Another strong resistance zone lays above here, provided by a cluster of sideways-moving daily MA’s (100/20/200) and bulls will face a tough work to resume.
Flat daily momentum warns but expectations for surge in US jobless claims would deflate dollar along with stimulus package and help Euro’s recovery.
Res: 1.0963; 1.1008; 1.1042; 1.1065
Sup: 1.0888; 1.0869; 1.0838; 1.0804