EURUSD – Break above 1.1500 could extend towards 1.1716/35 targets; ECB in focus
|The Euro resumed rally on Tuesday and eventually broke above near-term congestion just under 1.1500, inflated by fresh weakness on US dollar. Monday's trading that ended in long-tailed Doji was seen as brief consolidation ahead of fresh advance. Firmly bullish technicals continue to underpin, with close above 1.1500 handle to confirm bullish continuation. The pair eyes target at 1.1614 (03 May 2016 high) and could extend towards strong barriers at 1.1716/35 (Fibo 61.8% of 1.2567/1.0340 downleg/Fibo 38.2% of 1.3992/1.0340 descend), as those barriers also mark the top of longer term consolidation phase between 1.0340 and 1.1716. The pair is focusing on ECB's policy meeting on Thursday, with more hawkish tone from the central bank expected to further boost the single currency. Former congestion tops at 1.1490 zone now act as immediate supports, followed by rising Tenkan-sen/10 SMA at 1.1433 which should contain extended corrective dips and guard strong support at 1.1370 (13 July trough).
Res: 1.1565; 1.1614; 1.1643; 1.1716
Sup: 1.1490; 1.1433; 1.1400; 1.1370
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