The Euro regained traction and moved higher in early European trading on Thursday, following quick pullback from session high on Wednesday after Fed policy announcement.
The US central bank raised interest rates by 0.25%, in widely anticipated decision, but surprised markets by more hawkish then expected tone regarding the steps in 2019.
Markets expected the Fed to remain dovish in light of growing concerns about slowdown in global economy, but Fed chief Powell signaled further hikes next year, although in slower pace, with two rate hikes expected in 2019, compared to previous signals about three hikes.
While the Dec hike was already priced in, surprise forecasts initially boosted the greenback, but the action was so far limited.
The Euro recovered quickly from the action that was mainly not expected and broke again into thick daily cloud, offsetting negative signals from strong upside rejections in past two days which left daily candles with long upper shadows.
Strong bullish momentum supports the action which requires eventual close in the daily cloud as initial signal.
Fresh bullish acceleration pressures key barrier at 1.1444 (Fibo 38.2% of 1.1815/1.1215) where rallies were already rejected twice (19 / 10 Dec).
Break and close above 1.1444 pivot would be strong bullish signal for extension of recovery from the double-bottom at 1.1270 zone through recent highs at 1.1472/99, towards next key barrier at 1.1515 (daily cloud top / 50% of 1.1815/1.1215).
Res: 1.1444, 1.1472, 1.1499, 1.1515
Sup: 1.1397, 1.1388, 1.1362, 1.1336
