THE EUR/USD
The EURUSD is consolidating Friday’s 1.03% gain (the biggest one-day rally since July 12), but remains firmly bullish for further gains.
Soft U.S. employment data and less hawkish Fed deflated U.S. dollar and lifted euro to highest level since mid-September.
Weekly close above psychological 1.07 barrier generated initial bullish signal as Friday’s large bullish daily candle also supports action to attack next key resistance at 1.0764 (Fibo 38.2% of 1.1275/1.0448), break of which exposes targets at 1.0799/1.0804 (top of thick falling daily Ichimoku cloud / converging 100/200DMA’s) and 1.0862 (50% Fibo retracement).
Daily MA’s (10/20/55) are in bullish configuration and positive momentum is strong, although overbought conditions warn that bulls may face increased headwinds.
Broken 1.07 level has reverted to support which should ideally contain dips and guard the lower pivot at 1.0653 (55DMA).
Res: 1.0764; 10799; 1.0804; 1.0862.
Sup: 1.0722; 1.0700; 1.0674; 1.0653.
