EURUSD Outlook: Rises above 1.18 as impact on hawkish Fed fades; ECB in focus
|EURUSD
The Euro probes above 1.18 barrier in early European trading on Thursday, as dollar's initial strength after Fed's decision late Wednesday, started to fade. Hawkish tone from the Fed, which signaled two more rate hikes in 2018 initially boosted the dollar and pushed the single currency to one-week low at 1.1724 on Thursday, but Euro's weakness proved to be short-lived. Subsequent bounce managed to eventually close above falling 30SMA and generated initial bullish signal. Bulls broke next pivot at 1.1810 (Fibo 61.8% of 1.1996/1.1509), with close above it needed to confirm bullish continuation. Momentum remains in steep ascend and supports the advance, along with formation of 5/30SMA bull-cross, with rising weekly cloud continuing to underpin. Focus is turning towards ECB's policy decision, due later today, as markets expect the central bank to give more details about the timing of winding down its QE program. Bullish scenario requires sustained break above 1.1810 and former high of 07 June at 1.1839 to expose Fibo barrier at 1.1881 (76.4% of 1.1996/1.1509), break of which would unmask psychological 1.20 barrier, reinforced by 200SMA. Solid supports at 1.1780/70 zone (broken 30SMA / top of thick4-hr cloud) are expected to hold and maintain bullish bias.
Res: 1.1820; 1.1839; 1.1850; 1.1996
Sup: 1.1780; 1.1755; 1.1724; 1.1674
Interested in EURUSD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.