The Euro surged in Asia and hit new 2 ½ high at 1.1294, boosted by news about increased demand for the currency on Japanese bank plans for multi-billion purchase business from a German bank.
Fresh advance probes above converging 20/30SMA’s (1.1273/78) and through strong Fibo barrier at 1.1284 (38.2% of 1.1448/1.1183 / 10WMA) which capped multiple attacks in past few sessions.
Improved sentiment could help bulls along with rising momentum, but close above these barriers is needed to confirm bullish signal and open way towards next key barrier at 1.1216 (daily cloud base / 50% retracement / daily Kijun-sen).
The pair is on track for bullish weekly close that would also complete reversal pattern on weekly chart and signal further recovery.
Caution on repeated failure at 1.1284 that would signal extended sideways mode and make the downside more vulnerable.
Rising 10SMA (1.1241) underpins the action and marks pivotal support, loss of which will be bearish.
Res: 1.1294, 1.1316, 1.1348, 1.1385
Sup: 1.1273, 1.1251, 1.1241, 1.1210
