Bulls accelerate on fresh risk sentiment and pressure key barriers
The Euro accelerated higher on Tuesday (up 0.5% since opening in Asia), boosted by fresh risk sentiment on growing hopes for possible deal in US stimulus package talks.
Bulls extend strong rally into third day and broke above important barrier at 1.1811 (Fibo 50% of 1.2011/1.1612), neutralizing downside risk which arose from formation of bull-trap above this level last week.
Near-term focus shifts up as rally probes above previous high at 1.1830 (9 Oct) and pressures next key obstacles at 1.1848/58 (top of thick daily cloud / Fibo 61.8% of 1.2011/1.1612 descend).
Daily close above 1.1830 would generate initial bullish continuation signal, which will be verified on firm break above 1.1848/58 pivots.
This would open way for extension towards 1.1917 (Fibo 76.4%) and would unmask psychological 1.20 barrier.
Daily studies are in full bullish setup and support the action, with broken Fibo 50% and 55DMA (1.1811/1.1795 respectively) reverted to solid supports which are expected to keep the downside protected and maintain bullish bias.
Res: 1.1848; 1.1858; 1.1900; 1.1917
Sup: 1.1811; 1.1795; 1.1764; 1.1736