EUR/USD outlook: Bulls regain traction after shallow dip, focus key Fibo barrier at 1.1822

EUR/USD

The Euro regained traction after bulls paused on Tuesday and advances towards new two-year high. Tuesday's dip was shallow and managed to close above 1.1700 handle, pointing to the strength of the rally. The pair is on track for the biggest monthly gains since Sep 2010 that adds to positive signals. Strong bullish momentum on daily and weekly charts points to bullish short / medium term outlook. Bulls focus pivotal Fibo barrier at 1.1822 (61.8% of 1.2555/1.0635), break of which would expose 1.1882 (falling 100MMA) and unmask psychological 1.20 resistance. Overbought studies continue to warn but bulls so far ignore these signals. Dip-buying (ideally above 1.1600/1.1580 zone, broken Fibo 50% level / rising 10DMA) remains favored scenario.

Res: 1.1781; 1.1822; 1.1848; 1.1882
Sup: 1.1712; 1.1695; 1.1637; 1.1595

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