The Euro started the month in strong bullish mode and came ticks ahead of psychological 1.20 barrier in early Tuesday’s trading, hitting new highest level since May 2018.
Near-term action holds in green for the third consecutive day, lifted by fresh bearish extension of the dollar on rising bets that the Fed will keep ultra-low rates for prolonged period of time.
Pressure on 1.20 barrier is strong but a number of stops parked above and overbought daily stochastic provide headwinds that may keep bulls on hold for some time.
Scenario of clear break of 1.20 pivot sees acceleration higher on triggered stops and attack at 1.2102 target (Fibo 76.4% of 1.2555/1.0635) with extension towards 1.2166 (monthly cloud top) not ruled out as the cloud started to narrow and attracts. Dips are expected to hold above 1.1900 support zone (former tops/rising 5DMA) to keep bulls intact.
Res: 1.2000, 1.2046, 1.2095, 1.2102
Sup: 1.1930, 1.1915, 1.1892, 1.1857
