EURUSD – bulls probe above 1.25 barrier; targets at 1.2537/97 in focus
The Euro probed above 1.25 barrier in early European session trading on Thursday, extending strong rally from 1.2205 (09 Feb) into fourth straight day.
Euro’s bulls were interrupted on Wednesday after stronger than expected US inflation data sent the dollar higher across the board, but rally proved to be short-lived.
Post-data dip to 1.2275 and subsequent swift recovery offered good opportunity to renew existing longs for extension towards targets at 1.2537 (25 Jan new over three-year high) and 1.2597 (Fibo 61.8% of 1.3992/1.0340, May 2014 / Dec 2016 fall).
Rally may show hesitation before breaking through 1.2500/37 zone, however, bulls remain firmly in play and gaining bullish momentum for further advance.
Broken Fibo barrier at 1.2400 now acts as solid support and is expected to keep the downside protected.
Res: 1.2522; 1.2537; 1.2567; 1.2597
Sup: 1.2474; 1.2447; 1.2400; 1.2358