The Euro holds bullish near-term sentiment that was sparked by speculations about early change of the policy on Wednesday.
The pair rallies in early European trading after overnight’s dips were contained above strong support at 1.1160 zone and is attacking 1.1200 barrier again.
Wednesday’s long-tailed bullish daily candle is seen as bullish signal and break above daily Tenkan-sen (1.1182) and 10SMA (1.1187) will bring daily studies in full bullish setup.
Close above strong barrier at 1.1190/1.1207 zone (4-hr cloud top/Fibo 61.8% of 1.1268/1.1109 pullback/Wednesday’s high) is needed to confirm reversal and open way for possible full retracement of 1.1268/1.1109 downleg.
Initial support lies at 1.1160, followed by strong support at 1.1109/04 (Wednesday’s low/Fibo 38.2% of 1.0839/1.1268 upleg).
Today’s release of EU inflation and unemployment data will be closely watched for further signals.
Res: 1.1207; 1.1234; 1.1250; 1.1268
Sup: 1.1 172; 1.1160; 1.1145; 1.1109
