EURUSD – strong bullish signal on break of 1.2537 pivot; correction on oversold conditions to offer fresh buying opportunity
The Euro cracked key near-term barrier at 1.2537 and hit new high at 1.2555 (the highest since Dec 2014) on Friday.
Eventual push through 1.2537 pivot marked full retracement of 1.2537/1.2205 corrective phase and signaled continuation of broader uptrend from 1.0340 (2017 low).
Bulls now eye target at 1.2597 (Fibo 61.8% of larger 1.3992/1.0340, May 2014 / Jan 2017 fall) to generate another strong bullish signal on break.
The pair is also on track for strong weekly bullish close which would add on bullish outlook.
However, corrective easing could be anticipated on profit-taking at the end of week and strongly overbought slow stochastic, with bearish signal to be generated on indicator’s reversal.
Deeper dips could be seen as positioning for fresh advance and should find support at rising 20SMA (currently at 1.2378).
Res: 1.2555; 1.2597; 1.2643; 1.2718
Sup: 1.2496; 1.2447; 1.2400; 1.2378