Fresh risk mode supports bulls for renewed probe through 55SMA
The Euro maintains bid tone at the beginning of the week which will be shortened for holiday and probes again through important barrier at 1.1316 (daily cloud base / 55SMA / 50% retracement of 1.1448/1.1183 bear-leg), which was cracked on Friday.
Strong bullish momentum on daily chart and MA’s multiple bull-crosses (5/20; 5/30SMA’s) underpin the action, along with fresh risk mode.
Close above here is needed to further boost recovery for attack at next strong resistance at 1.1347 (100DMA / Fibo 61.8% of 1.1448/1.1183), violation of which would confirm reversal and expose daily cloud top (1.1373).
Caution of repeated failure to clearly break above 1.1316 barrier would signal that bulls might be running out of steam, but bullish bias is expected to persist while the price action holds above converged 20/30SMA’s (1.1273/77).
Res: 1.1323; 1.1347; 1.1372; 1.1385
Sup: 1.1298; 1.1273; 1.1253; 1.1230