Bulls eye psychological 1.20 barrier but consolidation may precede final attack
The Euro cracked 1.1900 barrier in early Friday’s trading and hit the highest in over two years after Thursday’s close above key Fibo barrier at 1.1822 (61.8% of 1.2555/1.0635) generated strong bullish signal.
Bulls turned focus to psychological 1.20 level, break of which would spark further advance and expose next target at 1.2102 (Fibo 76.4%).
The single currency heads for the sixth consecutive week in green, with last two weeks showing strong acceleration higher and for the biggest monthly advance in a decade (5.7%) that confirms strong bullish stance.
Bullish technical studies support the advance but consolidation ahead of attack at 1.20 target is very likely.
Strongly overbought daily studies and 14-d momentum turning south, support the notion, as traders may collect profits at the end of the week.
Broken Fibo level at 1.1822 reverted to strong support, with weekly close above here to bulls intact.
Eurozone GDP and US personal spending are highlights on today’s economic calendar.
Res: 1.1908; 1.1950; 1.2000; 1.2023
Sup: 1.1835; 1.1822; 1.1796; 1.1730