EURUSD extends rally on fresh risk sentiment as trade war concerns fade
The Euro gained pace and surged through initial barriers at 1.2402/12 (Fibo 61.8% of 1.2555/1.2154 pullback / 14 Mar lower top), as fears about trade war started to fade, bringing risk sentiment back to play.
The single currency is in strong bullish acceleration on Monday, which extends last Friday’s rally and marks 0.75% advance for the day so far, identical to 21 Mar post-Fed rally.
Bulls pressure next pivotal barrier at 1.2446 (07/08 Mar double-top), break of which would signal that 1.2555/1.2154 corrective phase might be over.
Fresh bullish momentum is building on daily chart and supports the rally along with daily MA’s in firm bullish setup. Sustained break above bear-trendline off 1.2555 high was strong bullish signal, as thickening daily cloud which contained last week’s downside attack, remains as strong support and continues to underpin the advance.
We look for today’s close above broken Fibo barrier at 1.2402 to generate bullish signal and confirm extension of recovery leg from double-bottom at 1.2240.
Res: 1.2446; 1.2460; 1.2500; 1.2522
Sup: 1.2412; 1.2402; 1.2388; 1.2370