EURUSD rallies above 1.2000 on hawkish ECB minutes

Slobodan Drvenica Windsor Brokers

EURUSD

The Euro surged above 1.2000 barrier (psychological resistance/10SMA) on strong bullish acceleration, driven by hawkish minutes of ECB's Dec meeting. The European central bank said it will revisit its policy message in early 2018, suggesting that policymakers could start preparing markets for the end of massive stimulus program soon. The Euro spiked to 1.2044 on more hawkish than expected ECB's stance which attracted investors for fresh Euro longs. Also, US weekly jobless claims increased for fourth straight week, lending additional support to the single currency. Today's rally retraced nearly 76.4% of 1.2088/1.1915 pullback, generating positive signal that corrective phase might be over. Close above 1.2000 is seen as minimum requirement to keep fresh bulls in play, with close above 1.2022 (Fibo 61.8% of 1.2088/1.1915) needed to generate stronger bullish signal for eventual extension towards key resistances at 1.2088/92 (peaks of 04 Jan/08 Sep). Alternative scenario sees increased risk of return to key support at 1.1915 (correction low/rising 20SMA) on return and close below 10SMA.

Res: 1.2044; 1.2052; 1.2088; 1.2092
Sup: 1.2022; 1.2000; 1.1981; 1.1956

Interested in EURUSD technicals? Check out the key levels

1. R3 1.2104
2. R2 1.2061
3. R1 1.2009
PP 1.1966
1. S1 1.1914
2. S2 1.1871
3. S3 1.1819

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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