The Euro accelerated higher in Asia on Friday after the EU leaders reached an agreement on migration. The rally broke through pivotal 10SMA barrier (1.1614), sidelining threats for retest of key support at 1.1508 (21 Jun low) as past three-day weakness found footstep at 1.1527 before bouncing. Bulls pressure next pivotal barrier at 1.1670 (converged 20/30SMA’s) after retracing over 61.8% of 1.1720/1.1527 bear-leg and shifting near-term focus higher. Sustained break here is needed to confirm reversal and open way for retest of week’s high at 1.1720 (posted on Tuesday) and weekly cloud top at 1.1746, which marks key near-term resistances. Daily RSI and momentum turned north, supporting the advance, with broken 10SMA expected to hold and maintain fresh bullish bias. Today’s calendar is full with focus on German labor data and EU inflation numbers, which could further influence Euro’s performance after downbeat German retail sales, released earlier this morning, showed minor impact on the single currency.
Res: 1.1670, 1.1700, 1.1720, 1.1766
Sup: 1.1614, 1.1600, 1.1558, 1.1527
