Bulls crack important barriers on Wednesday as strong rally extends into seventh straight day
The Euro hit new high at 1.1227 in early European trading on Wednesday, extending steep advance into seventh consecutive day.
The pair generated bullish signal on Tuesday’s marginal close above Key Fibo barrier at 1.1166 and today’s extension cracked next strong obstacles at 1.1221/24 (100WMA / weekly cloud top).
Data released today, showed that Eurozone deep downturn slowed in May (German and EU PMI’s came above expectations) adding to euro’s bullish tone.
Positive daily studies also underpin, with clear break of weekly cloud top to expose target at 1.1292 (Fibo 76.4% of 1.1494/1.0635), with possible extension towards 1.1369 (Fibo 38.2% of larger 1.2555/1.0635 descend).
Overbought stochastic and RSI warn that bulls may take a breather, but so far without firmer signals as indicators continue to rise in overbought territory.
Consolidative action should ideally stay above broken Fibo resistance at 1.1166, with extended dips to find ground above weekly cloud base (1.1117) to keep bulls in play.
Res: 1.1236; 1.1292; 1.1335; 1.1369
Sup: 1.1166; 1.1147; 1.1117; 1.1065