EUR/USD solid data boost recovery to attack pivotal Fibo barrier
Our preference: long positions above 1.0996 with targets at 1.1063 & 1.1163 in extension.Alternative scenario: below 1.0996 look for further downside with 1.0891 & 1.0806 as targets.
Fresh recovery acceleration cracked psychological 1.10 barrier and pressures pivotal
Fibo barrier at 1.1016 (38.2% of 1.1163/1.0925), break of which would generate
bullish signal and to positive tone that is developing on formation of reversal
pattern on daily chart.
The single currency was inflated by stronger pound on fresh Brexit optimism and
weaker dollar on downbeat US manufacturing data that raised concerns about
US economy is slowing down.
Better than expected EU / German services PMI data contributed to improved near-term sentiment.
Fresh bulls need close above 1.1016 Fibo barrier to get fresh signal of recovery
extension towards targets at 1.1047 (falling 10DMA); 1.1072 (Fibo 61.8%) and 1.1091 (20DMA).
Daily momentum is in steep ascend and stochastic reversed from oversold territory,
both supporting the advance.
Caution on failure to close above 1.1016 pivot and return below 1.10
handle which would generate initial signal that bulls might be running out of steam.