EUR/USD has broken key resistance from its March high, 61.8% retracement of its Q1 fall and downtrend from the beginning of the year at 1.2103/18. Analysts at Credit look for further strength to 1.2212, potentially the 1.2243 February high.
See: EUR/USD to advance nicely to 1.22/1.23 as Fed allows further dollar weakness – ING
Support moves to 1.2057/56
“EUR/USD removed key resistance at 1.2103/18 yesterday and completed a bullish ‘outside day’ in the process, reasserting an upward bias again. With the USD itself also under pressure and expected to weaken further into month-end we look for further strength to the 78.6% retracement of the Q1 fall at 1.2212, with scope for the 1.2243 February high, which we then look to try and cap to define the top of a fresh sideways range.”
“A direct break of the 1.2243 February high would open the door to a retest of the high for the year at 1.2350.”
“Support moves to 1.2103 initially, then 1.2067, with the immediate risk seen higher whilst above 1.2057/56. Below would see yesterday’s ‘outside day’ negated to warn of a ‘false’ break higher to turn the risk back lower for a slide back to 1.1995/90.”
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