Bulls taking a breather after Friday’s rally; 1.20 barrier in focus
Early Monday’s action is holding within narrow consolidation, following last Friday’s 0.7% advance and weekly gains of nearly 1%, as dovish Fed’s stance pressures the dollar and maintain positive Euro’s sentiment.
Bullish engulfing pattern on weekly chart, reinforces bullish structure and keeps focus at the upside.
The pair is also on track to end the fourth consecutive month in green and monthly close above important Fibo barrier at 1.1822 (61.8% of 1.2555/1.0635) and falling 100MMA (1.1869) that adds to positive signal.
Bulls look for retest of recent multi-month high at 1.1965 and attack at psychological 1.20 barrier, break of which would spark bullish acceleration by triggering stops parked above and expose targets at 1.2102/66 (Fibo 76.4% / monthly cloud top).
Res: 1.1929; 1.1952; 1.1965; 1.2000
Sup: 1.1884; 1.1850; 1.1830; 1.1810