The Euro maintains bullish tone on Thursday morning and extended strong advance of the previous day, sparked by dovish Fed, to crack Fibo barrier at 1.1503 (76.4% of 1.1569/1.1289 descend) and post new three-week high at 1.1514.
Bulls were distracted by downbeat German retail sales which fell by 4.3% in Dec (vs -0.5% f/c) in the fastest rate fall in eleven years, but negative impact was so far minimal.
The price action holds in green for the fifth straight day and maintains strong bullish momentum for further advance as positive sentiment strengthened after US central bank signaled a pause in policy tightening and sent dollar lower across the board. Bulls could extend towards key near-term barrier at 1.1569/86 (2019 high posted on 10 Jan and reinforced by falling 200SMA/Fibo 61.8% of 1.1815/1.1215 bear-leg).
Daily MA’s in bullish setup and north-heading indicators support scenario, however, overbought slow stochastic warns of consolidative action before bulls resume.
Session low at 1.1477 marks initial support, followed by broken Fibo 61.8% barrier at 1.1462 which is expected to contain extended dips and keep bulls in play.
Traders focus the key events of the European session, German labor data and EU GDP, which would provide fresh signals.
Res: 1.1514, 1.1540, 1.1569, 1.1586
Sup: 1.1477, 1.1462, 1.1449, 1.1424
