EURUSD – narrow consolidation and bullish bias above broken 200DMA
EURUSD is holding within a narrow consolidation under new 2 ½ month high for the second day, after the pair surged on Tuesday on lower than expected US inflation.
Limited dips point to still strong bids and suggests that bulls can resume after extended consolidation, as bulls strengthened grip after recent strong rally.
Daily chart shows strong positive momentum and bullish bias above broken 200DMA (1.0803) for sustained break through 1.0862 (50% retracement of 1.1275/1.0448 descend) and acceleration towards 1.0959/1.1000 (Fibo 61.8% / psychological).
Caution on break below 200DMA which would weaken near-term structure, but larger bulls should remain in play while the price holds above pivotal supports at 1.0764/56 (broken Fibo 38.2% / top of thick daily cloud).
Res: 1.0887; 1.0945; 1.0959; 1.1000
Sup: 1.0830; 1.0803; 1.0791; 1.0764