Profit-taking lifts Euro from three-month low
The Euro rebounds strongly on Thursday after failure to hold break below 1.1800 level, with fresh strength helped by oversold daily studies.
Fed minutes did not provide more evidence of QE tapering, while US jobless claims rose last week, prompting traders to take profit that lifted the single currency.
The ECB’s policy review showed that the central bank focuses more on the price growth suggesting the ECB follows US Federal Reserve’s policy path that contribute to improved sentiment.
Fresh recovery cracked initial barrier at 1.1866 (falling 10DMA), but needs sustained break above to signal further recovery towards descending 20DMA (1.1924) and possible extension towards 1.1975 lower top (June 25).
North-heading indicators on daily chart support the action, as RSI emerged from oversold territory and momentum pressures the border of positive zone.
Both indicators made a bullish divergence, adding to positive signals.
Res: 1.1865; 1.1901; 1.1924; 1.1975
Sup: 1.1827; 1.1800; 1.1781; 1.1737