EURUSD could extend to 1.25 zone on break above 1.2350 trigger
The Euro moved higher on Wednesday and hit new high at 1.2335, the highest since mid-Dec 2014, completing shallow correction (1.2323/1.2165) and signaling further advance.
Strong bullish sentiment was boosted by upbeat figures from EU / Germany on Tuesday (German / EU ZEW came well above expectations and EU Consumer confidence heavily beat forecast).
Daily techs are in firm bullish setup and support the rally, along with weaker dollar, dragged by fresh strength of Japanese yen.
Bulls eye next important target at 1.2350 (18 Dec 2014 high) firm break of which would open way towards 1.25 zone (17 Dec 2014 high lies at 1.2514).
German / EU PMI data are key releases for the single currency today (all forecasts are slightly below previous month numbers), with focus on key event of this week – ECB interest rate decision, due tomorrow.
Broken 1.2300 barrier acts as initial support, with rising 10 SMA (1.2226) expected to contain downside attempts.
Key supports lay at 1.2105 (rising 20SMA) and 1.2036 (Fibo 38.2% of 1.1553/1.2335 ascend) and break here would generate stronger bearish signal.
Res: 1.2335; 1.2350; 1.2376; 1.2435
Sup: 1.2300; 1.2270; 1.2250; 1.2226