The Euro keeps firm tone on fading hopes for ECB rate cut, with markets focusing on tomorrow’s release of German inflation data (annualized CPI expected to rise in May).
The bull leg off higher low at 1.0805, where 100DMA contained recent pullback, extends into third straight day and pressuring pivotal barriers at 1.0891/95 (Fibo 76.4% of 1.0981/1.0601 / May 16 high) violation of which to complete corrective phase and open way towards key targets at 1.0981/1.1000 (Mar 8 / Jan 11 highs / psychological).
Strong positive momentum and MA’s in bullish setup with multiple bull-crosses on daily chart, as well as completion of bull-flag pattern, support the action add to positive near-term outlook.
Rising 10DMA (1.0854) offers immediate support, guarding broken Fibo 61.8% (1.0836) and key supports at 1.0811/08 (converging 100/20DMA’s, on track to for another bull cross) which should keep the downside protected and maintain larger bullish bias.
Res: 1.0895; 1.0942; 1.0981; 1.1000.
Sup: 1.0854; 1.0836; 1.0808; 1.0785.
