Bulls regained traction and accelerated in early Tuesday’s trading after Monday’s pause.
Lift through Fibo barriers at 1.1806/15 (23.6% of 1.2266/1.1664 / 61.8% of 1.1908/1.1664) dented strong obstacle at 1.1832 (base of thick daily cloud), where strong headwinds could be expected.
The Euro continues to benefit from weaker dollar, deflated by dovish tone from Fed Chair Powell last Friday, while bullish daily studies contribute to positive near-term outlook.
Consolidation under the cloud base is likely to precede fresh push higher, with dips expected to stay above daily Tenkan-sen (1.1786) and provide better buying opportunities.
Penetration and close within the cloud is needed to confirm bullish signals and expose next key barriers at 1.1894/1.1908 (Fibo 38.2% of 1.2266/1.1664 / July 30 lower top.
Res: 1.1832, 1.1850, 1.1881, 1.1894.
Sup: 1.1806, 1.1786, 1.1757, 1.1734.
