The Euro hit new high at 1.2240 on Monday (the highest since 24 Dec 2014) in extension of Friday’s strong rally when the single currency advanced 1.3%. Weak dollar and rising hopes that the ECB could further trim its monetary stimulus, as signaled by hawkish minutes of Dec meeting, released last week, keeps the Euro well supported. Eventual break above key barriers at 1.2100 zone was bullish signal and the pair is looking for of highs posted in Dec 2014. Initial targets lay at 1.2271/1.2300, with stronger bullish acceleration capable of traveling through 1.2500 barrier towards 1.2568 (Dec 2014 high) and key resistance at 1.2597 (Fibo 61.8% of 1.3992/1.0340 descend). Caution on daily techs entering overbought territory which could signal corrective action in coming sessions. Broken former key barriers at 1.2100 zone now act as solid support and should contain corrective dips. Lower volumes could be expected during the US session due to US market holiday.
Res: 1.2240, 1.2271, 1.2300, 1.2350
Sup: 1.2187, 1.2116, 1.2092, 1.2040
