Euro jumps after Fed but traders look for confirmation from US congress to stronger embark longs
The Euro rose above 1.08 on Monday after Fed announced a new set of measures, but hesitation among investors is evident as the legislation need to be verified by the Congress.
Such scenario, according to immediate reaction on announcement, would be supportive for the single currency and spark stronger recovery.
Fresh bulls need close above 5DMA (1.0743) which would be a minimum requirement for initial bullish signal.
Further rise above 1.08 handle and Fibo barrier at 1.0838 (23.6% of 1.1494/1.0635) would add to positive signals and expose pivotal barriers at 1.0943/63 (falling 10DMA / Fibo 38.2%).
Technical indicators on daily chart also offer support as RSI bounced from oversold border, momentum heads south and stochastic attempts to emerge from oversold territory.
Caution on close below 5DMA that would signal another recovery stall and keep the pair within consolidation range, but with downside being vulnerable.
Res: 1.0827; 1.0838; 1.0900; 1.0943
Sup: 1.0716; 1.0700; 1.0666; 1.0635