The Euro maintains bullish tone on Thursday and tests strong Fibo barrier at 1.1810 (Fibo 61.8% of 1.1996/1.1509 bear-leg, also pressuring falling 30SMA (1.1817) which reinforces resistance.
Bulls were boosted by positive signal generated on Wednesday’s close above 20SMA (1.1749) and double-Fibonacci barrier at 1.1753/56 (50% retracement of 1.1996/1.1509 and 23.6% of larger 1.2555/1.1509 fall).
North-heading momentum enters positive territory with 5/10/20 SMA’s in bullish setup, maintaining positive environment for further gains.
Formation of reversal pattern above weekly Ichimoku cloud top also underpins the advance.
Sustained break above 1.1810/17 pivots would generate fresh bullish signal and open targets at 1.1881 (Fibo 76.4% of 1.1996/1.1509) and 1.1909 (Fibo 38.2% of 1.2555/1.1509).
Broken 20SMA marks solid support (reinforced by rising 5SMA which is looking to form a bull-cross) which is expected to protect the downside.
EU GDP data are key event of the European session today ( annualized Q1 f/c 2.5% vs 2.5% prev).
Res: 1.1830, 1.1881, 1.1909, 1.1996
Sup: 1.1772, 1.1750, 1.1733, 1.1683
