The Euro extends recovery rally into fourth straight day, supported by softer dollar and cracked very strong barriers at 1.1542/45 (falling 20SMA / weekly cloud base). The single currency received additional boost from comments of President Trump, who reiterated his stance regarding raising US interest rates, as well as caution ahead US/China trade talks, which pushed the greenback into defensive mode. Monday’s close above pivots at 1.1454 (10SMA) and 1.1470 (Fibo 38.2% of 1.1745/1.1302 descend) confirmed Doji reversal pattern on daily chart and generated bullish signal for recovery extension. Fresh bulls faced so far strong headwinds at 1.1445 resistance zone and may hold in extended consolidation before fresh attempts higher, with overbought slow stochastic supporting scenario. Extended dips should be contained above broken 10SMA to keep near-term bulls in play for renewed attack at 20SMA / weekly cloud base pivotal barriers. Break and close above 20SMA would be bullish signal for recovery extension towards 1.1575/83 (Fibo 61.8% / falling 30SMA) and 1.1627 (55SMA). Caution on repeated upside failure, as thick weekly cloud weighs heavily and may cap recovery action. Return and close below 10SMA would weaken near-term structure and risk fresh acceleration lower.
Res: 1.1545, 1.1575, 1.1627, 1.1640
Sup: 1.1470, 1.1446, 1.1405, 1.1394
