The Euro is consolidating within narrow range above former pivot at 1.0700 and fresh highs at 1.0734, posted after Monday’s strong rally when the pair was up 0.84%, on the strongest one-day rally since 15 Mar. Close above 20SMA (1.0688) and former pivotal barrier at 1.0700 (Fibo 38.2% of 1.0905/1.0568 fall) was strong bullish signal for further upside action. The rally faced strong barrier at 1.0738 (daily Kijun-sen) below which it is consolidating, with bullishly aligned daily MA’s conflicting with negative daily indicators. Break above Kijun-sen resistance is needed to open next important barrier 1.0776 (Fibo 61.8%), however, near-term action may stay on hold ahead of release key data from Eurozone, due at 09:00 GMT. Monthly inflation in the Eurozone is forecasted at 0.8% in March, above 0.4% release from February, while annualized CPI is expected to stay unchanged at 1.5% in Mar. The Euro is looking fresh boost on inflation’s upside surprise, with weaker tone expected on inflation miss in March. Solid supports 1.0700/1.0688 are expected to hold and keep strong bullish sentiment in play, while break lower would signal stronger correction of Tuesday’s 1.0634/1.0734 rally.
Res: 1.0738, 1.0776, 1.0800, 1.0825
Sup: 1.0711, 1.0700, 1.0688, 1.0659
