EURUSD Outlook: Euro Rises as Higher Wall St Depresses Dollar

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The Euro rose to two-week high at 1.1621 in early US trading, as dollar fell across the board on upbeat US earnings reports which inflated stocks. Stronger than expected US industrial production in Sep (0.3% m/m vs 0.2% f/c) did little to help greenback, which stands at the back foot. Choppy trading in European session managed to stay above daily cloud and keep bullish stance in extension of Monday’s rally, as fresh bullish acceleration cracks a cluster of daily MA’s at1.1608/27 zone. Daily momentum turns up but overbought slow stochastic warns, with close above 1.1627 (100SMA) to generate bullish signal for continuation of recovery leg from 1.1432. Today’s close above cloud top is minimum requirement to keep bullish bias, with consolidation between cloud top and 100 SMA expected if bulls fail to clear 1.1627 pivot.

Res: 1.1627; 1.1668; 1.1724; 1.1757
Sup: 1.1587; 1.1569; 1.1545; 1.1534