EURUSD – renewed strength driven by politics focuses 1.0800/27 targets
The Euro is in fresh acceleration higher and posts new, marginally higher highs after two-day consolidation was contained above 1.0700 handle.
The single currency received strong support from news of French presidential candidate Macron is leading the election race after winning French TV presidential debate on Monday that eased fears about potential France exit from the EU.
Friday’s long red candle and Monday’s Doji with long upper shadow, did little as bearish signals to intensify downside pressure, as strong post-FED bullish sentiment remains firmly in play.
The pair is eyeing psychological 1.0800 barrier and key resistance at 1.0827 (02 Feb peak, also near 50% retracement of larger 1.1298/1.0339 descend) in extension.
Sustained break here would signal bullish continuation of broader recovery rally from 1.0339 (2017 low).
Overbought slow stochastic on daily chart suggests that the pair may show hesitation ahead of 1.0827 pivot, but no firmer bearish signal seen so far.
Hourly Ichimoku cloud (spanned between 1.0743/50) marks initial support, guarding Monday’s low at 1.0719 and 1.0700 handle.
Rising 10SMA continues (currently at 1.0680) to underpin and should contain extended downticks.
Res: 1.0800; 1.0827; 1.0872; 1.0931
Sup: 1.0758; 1.0743; 1.0719; 1.0700
Interested in EURUSD technicals? Check out the key levels
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.
