EURUSD – bulls take a breather ahead of fresh advance

EURUSD extends steep ascend into second consecutive day and trading at three-month high on Thursday.

Bulls hold grip after Wednesday’s 0.85% advance (the biggest daily gain since March 19), after generating bullish signals on break above 200DMA (1.1628) and Fibo 61.8% of 1.1849/1.1324 (1.1648) and probe through round-figure barrier at 1.1700.

Dips on partial profit-taking are likely to be limited (ideally to be contained by broken Fibo 61.8% (1.1648) to keep bulls intact and provide better levels to re-enter bullish market for extension towards 1.1725 (Fibo 76.4%) and 1.1800 zone (early May lower platform).

Daily studies are firmly bullish but overbought that contributes to scenario of limited pullback ahead of fresh push higher.

Caution on dips below 200DMA that may weaken near-term structure.

Res: 1.1710; 1.1725; 1.1800; 1.1849
Sup: 1.1690; 1.1648; 1.1628; 1.1610