The Euro extends higher in early Thursday’s trading, following positive close on Wednesday (after six straight days in red), hurting near-term negative bias.
Pullback from 1.2011 peak (2020 high) found footstep at 1.1752 (contained by lower 20-d Bollinger band) that keeps key supports at 1.1700 zone out of reach for now and reduces risk of deeper correction on break here.
Fresh recovery attempt is supported by fresh bullish momentum and rising RSI/stochastic on daily chart, but more work at the upside is required to signal reversal.
Lift and close above 1.1850 zone (Fibo 38.2% of 1.2011/1.1752 downleg/converged 10/20DMA’s) is needed confirm bullish signal and open way for further recovery, with extension above 1.1912 (Fibo 61.8%) to confirm reversal.
Markets await ECB policy meeting as this week’s key event, with the latest expectations pointing to central bank’s upbeat outlook that would supportive for the single currency.
Res: 1.1836, 1.1850, 1.1881, 1.1912
Sup: 1.1797, 1.1752, 1.1711, 1.1689