The Euro maintains firm bullish tone on Tuesday and extends the rally of the previous day, when strong advance of sterling boosted the single currency.
Fresh extension higher broke through a cluster of daily MA barriers (5/10/55) and is pressuring the base of thin daily cloud (spanned between 1.1649 and 1.1678, with cloud base being reinforced by Fibo 61.8% of 1.1733/1.1526 bear-leg).
Fresh bullish momentum is building and supporting the pair, along with other indicators in bullish setup.
Break through daily cloud would open way towards key barriers at 1.1733 (28 Aug high) and 1.1750 zone (late Aug lower base).
German / EU ZEW economic sentiment data are due today and mark key events of the European session.
German economic sentiment is expected to fall further in September (-14.0 vs -13.7 in Aug), while forecast for the economic sentiment of the Eurozone is slightly better (-10.9 f/c for Sep vs -11.1 in Aug).
Bullish signal is expected on better than expected release, which could accelerate bulls through daily cloud and falling 100SMA (1.1691) towards 1.1733/50 targets.
Conversely, downbeat data would slow Euro’s bulls and risk dip towards 1.1577 pivot (rising 20SMA).
Res: 1.1649, 1.1678, 1.1691, 1.1733
Sup: 1.1612, 1.1577, 1.1560, 1.1526
