The Euro extends recovery into fifth straight day, with bullish signal generated on Wednesday’s close above 1.0838 Fibo barrier (23.6% of 1.1494/1.0635).

Fresh advance cracks the base of thick daily cloud (spanned between 1.0930 and 1.1008) reinforced by daily Tenkan-sen.

Penetration into daily cloud would expose next pivotal Fibo barrier at 1.0963 (38.2% retracement), break of which would generate initial reversal signal which will require confirmation on close above 1.1000/08 (psychological/cloud top).

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Another strong resistance zone lays above here, provided by a cluster of sideways-moving daily MA’s (100/20/200) and bulls will face a tough work to resume.

Flat daily momentum warns but expectations for surge in US jobless claims would deflate dollar along with stimulus package and help Euro’s recovery.

Res: 1.0963, 1.1008, 1.1042, 1.1065
Sup: 1.0888, 1.0869, 1.0838, 1.0804


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