The Euro is holding just under fresh multi-month high at 1.1285 in early Thursday’s trading, with eyes on today’s ECB policy meeting. The single currency maintains firm tone for eventual attack at 1.1300 barrier (09 Nov post US-election spike high), as is spent past two weeks in narrow consolidation under the target. Yesterday’s dip to 1.1200 zone on news that the ECB needs more evidence of inflation before starts changing monetary policy and subsequent bounce that fully reversed the fall, was seen as bullish signal. Bullish technicals are supportive for probes above 1.1300 but no stronger acceleration is expected, as studies on daily and weekly charts are strongly overbought. Break above 1.1300 barrier would be bullish signal for extension towards next target at 1.1366 (18 Aug 2016 high). On the downside, rising 10SMA (1.1230) marks initial support, followed by daily Tenkan-sen (1.1197) and rising 20SMA (1.1180). Break of these supports would signal further weakness and expose key near-term support at 1.1109 (30 May trough). Traders are awaiting for ECB but other two events today, UK election and testimony of former FBI Director Comey to Senate committee are also in focus and may affect the Euro’s performance.
Res: 1.1285, 1.1300, 1.1366, 1.1400
Sup: 1.1247, 1.1230, 1.1197, 1.1109