Probe above key Fibo barrier exposes next strong obstacles at 1.1221/24
The Euro extends advance into sixth straight day on Tuesday and cracked key Fibo barrier at 1.1166 (61.8% of 1.1494/1.0635) to post new 2 ½ month high at 1.1187.
Weak dollar and growing risk mode keeps the single currency inflated and bulls look for today’s close above 1.1147 (27 Mar former high) and1.1166 Fibo level to generate fresh bullish signal for extension towards next strong barriers at 1.1221/24 (100WMA / weekly cloud top).
Rising positive momentum and daily MA’s in firm bullish configuration (10/200DMA’s golden cross formed today) support the action, but overbought conditions warn that bulls may lose traction and consolidate before continuing.
Extended dips should find support above daily cloud top (1.1165) to keep bulls in play.
Only return and close below 200DMA (1.1010) and psychological 1.10 support would neutralize and shift focus lower.
Res: 1.1187; 1.1200; 1.1224; 1.1236
Sup: 1.1147; 1.1100; 1.1065; 1.1010