The Euro extends recovery on Thursday and pressuring pivotal barriers at 1.0954 (falling 30DMA/Fibo 38.2% of 1.1239/1.0778), after taking out initial barrier at 1.0904 (20DMA).
Fresh bullish acceleration emerged after Wednesday’s long-legged Doji showed strong indecision, signaling further advance as traders collected profits from larger downtrend.
Momentum on daily chart is in steep ascend and about to break into positive territory that adds to bullish signals on formation of Doji reversal pattern on weekly chart, however, bulls may face headwinds as daily stochastic is strongly overbought.
Bulls are expected to hold grip while holding above 20DMA, with break and close above 1.0954 to open way for stronger correction of 1.1239/1.0778 fall and expose psychological barrier at 1.10.
Caution on fall and close below 20DMA that would generate initial signal of an end of recovery phase, which will be confirmed on close below 10DMA (1.0844).
Res: 1.0954, 1.1000, 1.1036, 1.1050
Sup: 1.0904, 1.0877, 1.0855, 1.0844
