EURUSD rallies on potential for Koreas’ talks; probes above pivotal 1.24 barrier
The Euro surged to new two-week highs at 1.2400 zone, on fresh bullish sentiment from news about summit between North and South Korea, which was planned for late April, regarding denuclearization and normalizing ties. Surprise decision of meeting of two neighboring countries in more than a decade, triggered fresh action in the markets. The greenback was sharply lower against risk-sensitive currencies, like Euro; sterling and Aussie and hitting new lows on Tuesday. The EURUSD pair accelerated higher after holding within narrow range during Asian and early European trading. Fresh acceleration signals continuation of recovery leg from 1.2154 trough after Monday’s long-legged Doji signaled indecision and pause in the rally. Bulls cracked pivotal barrier at 1.2400 (Fibo 61.8% of 1.2555/1.2154 downleg), looking for further upside if a number of stops above are triggered. Scope for bullish extension exists and requires firm break above 1.24 pivot to open targets at 1.2460 (Fibo 76.4%) and psychological 1.2500 barrier. Setup of daily MA’s improved, however, overbought slow stochastic and bearishly aligned momentum, keep in play risk of corrective easing. Daily 20SMA holds today’s action and marks solid support at 1.2323, which is expected to keep the downside protected.