The Euro holds in red in early trading on Friday and probes through 1.17 handle as dollar firmed despite US – North Korea tensions.
Bears are taking a breather above weekly cloud top (1.1675) which was tested on Wednesday and may stay in extended consolidation on Friday’s close above weekly cloud.
Bullishly aligned momentum and oversold RSI/slow stochastic support the notion and partially offset pressure from daily MA’s in strong bearish configuration. Bearish scenario on break and close below weekly cloud top could risk fresh acceleration lower and expose strong support at 1.1553 (07 Nov 2017 trough).
Weekly close above cloud would generate initial basing signal and trigger profit taking on broader shorts.
Initial range is seen between weekly cloud top (1.1675) and falling 10SMA (1.1781) while break above 10SMA would signal stronger recovery.
German Ifo Business Climate is the key event in European session for the single currency (Apr f/c 102.7 vs 102.1 previous month) and could spark stronger action on surprise.
Res: 1.1726, 1.1750, 1.1781, 1.1807
Sup: 1.1690, 1.1675, 1.1650, 1.1600
