The Euro broke psychological 1.1000 barrier and extended above former high and strong upside rejection at 1.1020 on 08 May. The single currency extends strong bullish acceleration from 1.0838 correction low for the third straight day, driven by strong bullish sentiment and weaker US dollar. Today’s fresh bullish extension also penetrated into weekly cloud which twisted last week, attracting for further upside. Firmly bullish daily studies are supportive for further upside and test of strong barriers ahead, provided by 20-d Bollinger band at 1.1056, weekly cloud top at 1.1067 and Fibo 76.4% of 1.1298/1.0338 downleg at 1.1071. Daily close above 1.1000 handle is seen as minimum requirement to keep firm bullish stance for further advance. The pair is awaiting releases of German ZEW economic sentiment which is expected to rise significantly, according to the forecast at 22.00 vs April’s 19.5 release and EU Q1 GDP data. Eurozone Gross Domestic product is expected to stay unchanged in the first quarter (y/y forecast is at 1.7%, while q/q is expected to stay at 0.5%). Releases at/ above consensus would further support the Euro while disappointing numbers would drag the currency lower.
Res: 1.1034, 1.1056, 1.1071, 1.1100
Sup: 1.1000, 1.0970, 1.0950, 1.0930
