The Euro holds strong bullish tone on Friday and extends recovery rally from 1.1302 low into second day.
After falling 10SMA, which limited Thursday’s action, was taken out, bulls generated fresh signal on break above double-Fibo pivot at 1.1423 (38.2% of 1.1621/1.1302 bear-leg/23.6% of 1.1815/1.1302) and threatening of extension above falling 20SMA (1.1462), in extended short squeeze.
Strengthening momentum and fresh risk appetite on signals of easing US/China trade tensions are supportive factors for the single currency.
Weekly close above 1.1423 is needed to confirm fresh bullish stance for extended recovery action after bears failed at key 1.1300 support.
US jobs data are expected to provide fresh signals, with any miss expected to keep the dollar under pressure and spark recovery extension.
Break above 20SMA would expose next strong barriers marked by double-Fibo barriers at 1.1499 (38.2% of 1.1815/1.1302/Fibo 61.8% of 1.1621/1.1302) and falling 30SMA at 1.1512.
Conversely, the Euro could come under pressure on upbeat US labor data and reverse the biggest part of recovery rally.
Res: 1.1462, 1.1499, 1.1512, 1.1567
Sup: 1.1423, 1.1398, 1.1335, 1.1314