Strong bullish signal on break above major resistances
The Euro cracked psychological 1.1300 barrier in extension of strong post-Fed rally on Thursday, which broke through key barriers at 1.1279/84 (daily cloud top / broken bear-trendline / Fibo 61.8% of 1.1347/1.1181 fall).
Euro’s sentiment improved strongly after Fed confirmed its dovish stance and readiness to cut interest rates.
The single currency advanced 0.9% on Wednesday and Asian / European sessions on Thursday and shows scope for further rise as studies turned positive and maintain strong bullish momentum on daily chart.
Close above daily cloud top is needed to confirm scenario and unmask key barriers at 1.1347 (7 June high / 200WMA) and 1.1353 (200SMA).
Broken daily cloud top marks strong support which should keep the downside protected and guard other pivotal supports at 1.1265 zone (10/100SMA’s / daily Tenkan-sen).
Res: 1.1308; 1.1347; 1.1353; 1.1390
Sup: 1.1279; 1.1265; 1.1245; 1.1225