The Euro trades higher on Friday after previous day’s fall was contained by 20SMA, sidelining risk of deeper pullback.
Rising bullish momentum on daily chart is supportive for further recovery and retest of key near-term barrier – falling 55SMA (1.1616), close above which would signal bullish continuation.
In addition, reversal pattern has formed on weekly chart, on previous week’s hammer and this week’s strong rally which penetrated thick weekly cloud, suggesting that further advance could anticipated in coming sessions.
Weekly close above key supports at 1.1528/25 (20SMA/weekly cloud base) is needed to confirm scenario.
Res: 1.1578, 1.1616, 1.1640, 1.1659
Sup: 1.1549, 1.1525, 1.1500, 1.1462
