The euro remains constructive on Friday after the previous day’s jump due to the European Central Bank raising interest rates (the first in three years).
The latest news about a possible peace agreement in the Middle East is also contributing to a new positive tone, although markets need more evidence before reacting.
The pair is once again testing through initial barriers at the 1.1580 area (10DMA/Fibo 23.6% of 1.1849/1.1500) and needs a strong breakout higher to confirm a higher base at the 1.1500 area (formed after rejecting the double downside and generating an initial reversal signal.
However, the daily indicators are still within a bearish setup (moving averages/negative momentum studies) keeping the downside vulnerable, especially while the price is consolidating below the daily Ichimoku Cloud/Fibo 38.2% base (1.1630).
In such a scenario, limited rallies may provide better levels to re-enter a downtrend greater than 1.1850 (mid-April high).
Accuracy: 1.1602; 1.1630; 1.1645; 1.1674
sip: 1.1557; 1.1500; 1.1443; 1.1410
