The Euro rises further in early Monday’s trading, maintaining strong bullish tone, following last week’s nearly 2% advance.
Rising expectations of Fed rate cut deflate dollar and keep the single currency supported, with additional boost provided by today’s renewed risk appetite.
Fresh extension higher broke through important barriers at 1.1051 (100DMA) and 1.1063 (Fibo 61.8% of 1.1239/1.0778) and now pressuring 200DMA (1.1097).
Close above these levels would generate fresh strong bullish signal for further retracement of 1.1239/1.0778 fall.
Bullish momentum is in steep rise on daily chart and supports the advance, along with today’s daily cloud twist (1.1112), which also attracts bulls.
Upbeat German/EU Manufacturing PMI data for Feb add to bullish stance.
Surge through thin daily cloud would expose 1.1130 (Fibo 76.4%) and 16 Jan high at 1.1172.
Caution on initial signs of bulls’ fatigue in coming sessions as daily stochastic is strongly overbought, but still heading north while RSI is approaching the border of overbought territory.
Broken pivots at 1.1063/51/34 (Fibo 61.8% / 100DMA / 55DMA respectively) are now reverted to solid supports and expected to contain potential dips.
Only return and close below psychological 1.10 support would neutralize bulls.
Res: 1.1097, 1.1112, 1.1130, 1.1172
Sup: 1.1063, 1.1051, 1.1034, 1.1000
