EURUSD (1.1824): The EURUSD rally continued to power ahead with full steam with the common currency breaching past 1.1800 to rise to a fresh two and a half year low. The gains came on renewed optimism that the ECB could tighten monetary policy.
This was after the flash eurozone inflation estimate release and a better than expected unemployment data. The strong surge in the currency pair puts the downside in question. Support is now likely to be established at 1.1748 which marked the previous high befre price action broke past this level with a strong bullish candlestick pattern. Any declines could be expected only on a breakdown below the 1.1748 support, in which case expect to see the next support at 1.1635 coming into question.
