The Euro broke above 1.1800 barrier on Monday’s rally and extended larger bull-trend to fresh high at 1.1845, the highest since Jan 2015. The single currency ended month in firm bullish mode, marking the fifth consecutive bullish month and the biggest monthly gains since Mar 2016 and confirming strong bullish stance.
The price action on Tuesday is consolidating within narrow range, holding above 1.1800 handle, now reverted to support and reinforced by broken bull-trendline (former bull-channel upper boundary) and broken 200SMA, which marks solid support.
The wave C, on which the price is currently riding (commenced from 1.1312 trough), met its FE161.8% target at 1.1845 and could extend towards FE 200% at 1.1975 and psychological 1.2000 barrier, where falling thick monthly cloud could limit rally.
Bulls so far ignore strongly overbought studies on daily/weekly charts, however, corrective action should be anticipated. Strong uptrend favors dip-buying strategy, with corrective pullbacks below 1.1800 handle to face support at 1.1693 (rising 10SMA) and expected to hold above ascending 20SMA (currently at 1.1563).
Res: 1.1845, 1.1896, 1.1950, 1.1975
Sup: 1.1800, 1.1776, 1.1723, 1.1693
