EURUSD – bulls likely to take a breather after last week’s strong gains

The Euro keeps firm tone on Monday after surging over 4% last week and consolidating near new four-month high.

The single currency continues to ride on a fresh wave of dollar’s weakness, with last week’s gains being the biggest since the third week of March 2009, adding to significance of the latest rally.

Overall picture remains supportive, as fundamentals continue to work in favor of euro and technical studies are in full bullish configuration.

Last week’s close above important Fibo resistance at 1.0818 (61.8% of 1.1214/1.0177) contributed to bullish structure.

However, overbought conditions on daily chart suggest that bears may lose traction at this zone and pause for consolidation.

Broken 1.0818/00 supports (Fibo / psychological) offer immediate support, with broken 200DMA (1.0726) to ideally contain extended dips and mark positioning for fresh push higher and attack at 1.0969/1.1000 (Fibo 76.4% / psychological).

Res: 1.0888; 1.0900; 1.0969; 1.1000
Sup: 1.0800; 1.0726; 1.0695; 1.0613