The Euro probes above new 1 1/2 week high at 1.1420 after narrow consolidation in early Monday’s trading, following 0.8% advance on Friday (the biggest one-day rally in Nov).
Strong bullish acceleration on Friday was sparked by comments from Fed’s new vice chairman, who pointed at global growth slowdown, which could impact the outlook for the US economy.
Markets reacted on news, sending dollar lower across the board, as the comments from one of Fed’s top officials raised a question mark above strong expectations for Fed’s another rate hike in December.
The single currency maintains positive near-term tone, as last week’s recovery rally from 1.1215 double-bottom eased downside risk and shifted focus at key Fibo barrier at 1.1444 (38.2% of 1.1815/1.1215 descend).
Fresh bulls were so far capped by falling 30SMA (1.1421) which guards 1.1444 pivot, with consolidation expected to hold above broken 20SMA (1.1369) and keep bullish near-term bias.
Sustained break above 1.1444 Fibo barrier would generate bullish signal for recovery extension towards 1.1499 (07 Nov spike high) and next pivot at 1.1515 (50% of 1.1815/1.1215 reinforced by falling 55SMA).
Daily techs maintain strong bullish momentum, with thin daily cloud twisting next week, expected to attract bulls.
The notion is supported by last week’s bullish long-tailed weekly candle, following the third consecutive failure to close below 200WMA (1.1313), which also generated positive signal on formation of weekly bullish engulfing.
Res: 1.1444. 1.1499. 1.1515. 1.1559
Sup: 1.1393. 1.1369. 1.1352. 1.1321
