Recovery looks for more positive signals on break of pivotal barrier
Recovery from new two-year low extends into third straight day and pressuring pivotal Fibo barrier at 1.0920 (38.2% of 1.1184/1.0757 bear-leg, reinforced by 20DMA).
Wednesday’s close above 10DMA (1.0845) generated initial bullish signal which looks for confirmation on clear break of 1.0920 that would open way for test of key obstacles at 1.0971/1.1000 (50% retracement / psychological).
Daily techs show14-d momentum heading north but still deeply in negative territory, while MA’s are in mixed setup, lacking clear direction signal.
Traders look for more signals from EU inflation data, which is expected to rise to a record high in March and speeches from the heads of ECB, Fed and BoE, due later today.
Res: 1.0931; 1.0948; 1.0971; 1.1000
Sup: 1.0867; 1.0845; 1.0806; 1.0757