Euro rises to new 32-month high, eyes key barriers at 1.25 zone
The Euro rose to new 32-month high (1.2334) in early European trading on Wednesday, lifted by fresh wave of risk appetite as early reports show Democrats leading in Georgia Senate races, although the final outcome may take days.
Break of 1.23 barrier, under which the pair was congested in past four days, triggered stops above and helped bulls.
The pair is channeling higher from 1.1604 (Nov 4 trough) in the bull-leg which is a part of larger uptrend from early March.
Initial targets lay at 1.1.2413/19 (Apr 2018 high / Fibo 200% projection of the upleg from 1.1602) and guard key barriers at 1.25 zone (1.2500 – psychological; 1.2517 – Fibo 38.2% of 1.6039/1.0340 and 1.2555 – 16 Feb 2018 peak).
Bull-trendline off 1.1602 and rising 10DMA offer solid supports at 1.2253/36 which should ideally contain dips, while extension below rising 20DMA (1.2202) would put immediate bulls on hold.
Res: 1.2400; 1.2413; 1.2450; 1.2500
Sup: 1.2300; 1.2275; 1.2253; 1.2236