Fresh bullish extension approached key barriers
The Euro extends steep uptrend (up over 4% this month) and broke above 1.1700 barrier for the first time since Sep 2018.
Fresh advance hit new 23-month high on Monday as the single currency was further boosted by rising tensions between the US and China that pushed the greenback to the lowest levels in nearly two years.
Bulls came ticks away from significant barriers at 1.1735/40 (Fibo 38.2% of 1.3992/1.0340 descend / base of thick monthly cloud) and expected to face strong headwinds here.
Overbought daily studies (although indicators still don’t show signs of reversal) add to warning signals.
The Euro is considered safe asset like gold and tracked the yellow metal during July, making the biggest monthly advance since March 2016.
Current situation of very strong safe-haven demand could drive the Euro much higher.
Break of 1.1735/40 pivots would unmask targets at 1.1822 (Fibo 61.8% of 1.2555/1.0635) and 1.1881 (100MMA).
Res: 1.1724; 1.1735; 1.1740; 1.1800
Sup: 1.1677; 1.1637; 1.1605; 1.1581