The Euro is in strong bullish acceleration on Monday as the dollar was hit by increased political risk concerns after Trump’s efforts to reform healthcare failed and focus turned towards economic plans for tax cuts and spending.
The pair opened with gap-higher on Monday and subsequent rally is pressuring targets at 1.0872 / 79 (08 Dec spike high / 200SMA).
Strong bullish momentum is likely to drive the price higher, as the pair closed for the fourth straight week in strong bullish mode, amid dollar-negative sentiments and growing hopes that far-right anti-EU candidate will be defeated in French presidential elections.
Price action may show hesitation at 200SMA barrier, as near-term studies are strongly overbought, however, dip-buying strategy remains favored.
Session low at 1.0821, reinforced by broken weekly Kijun-sen, is required to contain dips to keep today’s gap intact.
Sustained break above 200SMA would unlock psychological 1.1000 barrier and 1.1067 (weekly cloud base) in extension.
Conversely, loss of 1.0820/00 zone would risk deeper pullback and expose next pivots at 1.0759 (Friday’s low) and 1.0736 (daily Tenkan-sen).
Res: 1.0879, 1.0931, 1.0950, 1.1000
Sup: 1.0837, 1.0821, 1.0800, 1.0759