The Euro extends recovery in early Monday’s trading after Friday’s long-legged Doji, which signaled strong indecision but generated bullish signal on repeated close within thick daily cloud.
Fresh advance is supported by strong bullish momentum and daily MA’s turning to positive setup and pressures pivotal barrier at 1.1444 (Fibo 38.2% of 1.1815/1.1215 descend).
The barrier was broken several times in past two weeks, but bulls were so far unable to register close above it.
Sustained break here is needed for fresh bullish signal for extension towards 100SMA (1.1478) and pivotal 1.1515 barrier (daily cloud top / 50% of 1.1815/1.1215).
Softer dollar after Fed Powell’s speech last Friday, which revived concerns that the US economy is losing momentum and signals of continuation of US/China trade talks which offset positive impact from upbeat US jobs data in Dec, keep the Euro supported.
Cluster of daily MA’s at 1.1400/1.1370 zone marks solid supports ahead of daily cloud base (1.1363) break of which will be bearish.
Res: 1.1444, 1.1478, 1.1496, 1.1515
Sup: 1.1400, 1.1381, 1.1370, 1.1363
