The Euro hit session high at 1.1380 at the beginning of European trading on Monday, following gap-higher opening and subsequent advance in Asian session.
The single currency benefits from renewed risk appetite after agreement of US President Trump and Chinese President Xi to put on hold new tariffs for 90 days, which sideline trade war risk, prompted investors into riskier assets.
Fresh rally left higher low at 1.1305 (posted on Friday after 0.65% fall for the day) and retraced so far 76.4% of Friday’s 1.1400/1.1305 fall and neutralized immediate downside risk, signaled by Friday’s long red daily candle.
Fading bullish momentum on daily chart warns that fresh bulls may have difficulties at strong barriers at 1.1398/1.1400 (bear-trendline off 1.1815, 24 Sep high / Thu/Fri double top).
Sustained break here is needed to generate stronger bullish signal on break above near-term triangle and expose next pivotal barriers at 1.1444 (cracked Fibo 38.2% of 1.1815/1.1215) and 1.1466 (falling 55SMA).
Failure at 1.1400 zone would keep the downside vulnerable, with increased risk towards key 1.1215 support (12/13 Nov lows) expected on firm break below Friday’s low at 1.1305.
Res: 1.1380, 1.1400, 1.1433, 1.1444
Sup: 1.1328, 1.1305, 1.1267, 1.1215
