The Euro surged further after being initially pushed higher by remark from ECB chief Draghi that discussion should take place in the autumn, which heated his post-EB policy meeting speech, generally seen as usual dovish mantra.
Draghi said expecting inflation to rise only gradually and substantial degree of accommodation is still needed, similar wording to his speech three weeks ago.
Fresh boost for the single currency came from news about expanding Russia probe to Trump’s business transactions which sent the dollar lower across the board.
The Euro enjoyed strong supports and spiked to the highest levels in over two years, hitting so far high at 1.1658.
The pair is riding on extended wave C of five-wave cycle from 1.1188 which dented its FE100% at 1.1643 and heading towards target at 1.1735 (Fibo 38.2% of 1.3992/1.0340 descend).
With daily indicators entering overbought zone, the pair may show hesitation ahead of 1.1735, with corrective easing expected on firmer bearish signals.
Tuesday’s high at 1.1583 now acts as initial support, followed by rising daily Tenkan-sen which tracks the ascend for over three weeks, currently at 1.1514.
Res: 1.1658; 1.1700; 1.1735; 1.1800
Sup: 1.1600; 1.1583; 1.1556; 1.1514
