Recovery was so far limited, unchanged ECB to further weigh on risk rally
The Euro remains constructive after recovery attempts ran out of steam under key Fibo barrier at 1.2166, resulting in bearish daily close on Wednesday.
Strong reversal signals on bear-trap and hammer candle on Monday continue to underpin the single currency.
Rising risk sentiment, presented by rally in stocks and commodities, is expected to inflate euro but bulls might be obstructed by ECB, as the central bank likely to stay on hold on today’s meeting, after the broad easing of monetary policy last month.
Daily tech remain mixed and lack clearer direction signals, which would be provided by violation of pivotal points.
Upper triggers lay at 1.2138 (10DMA) and 1.2166 (Fibo 38.2% of 1.2349/1.2053) and break higher would signal recovery continuation.
On the other side, 5DMA offers immediate sport at 1.2100, guarding key supports at 1.2064 (Fibo 38.2% of 1.1602/1.2349 rise) and 1.2040 (top of rising and thickening daily cloud).
Res: 1.2138; 1.2158; 1.2166; 1.2186
Sup: 1.2100; 1.2064; 1.2053; 1.2040