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The Euro achieved remarkable gains yesterday against the US dollar, nullifying the negative outlook as we expected, looking to the stability of trading below 1.1750, as a reminder that we indicated during the previous analysis that trading above 1.1750 will stop the downward trend and lead the pair to an upward path, its initial target of 1.1800 to reach its highest level at 1.1794, compensating part of sell position losses.
Technically speaking, we find that the pair benefited from the return of consolidation above the 1.1720 support floor represented by the 23.60% Fibonacci as shown on the chart, in addition to the price consolidation above the 50-day moving average that meets around the previously breached resistance level of 1.1750.
Therefore, we believe that there is a possibility to continue the rally that started yesterday, but conditional on confirming the breach of 1.8100, and this is a catalyst that enhances the chances of the rally towards 1.1845, and then 1.1890 a next station that may extend later towards 1.1920.
On the downside, the return of trading stability below 1.1720 and stability below it, causes us to resume activating short positions with targets are around 1.1620.
| S1: 1.1720 | R1: 1.1810 |
| S2: 1.1665 | R2: 1.1845 |
| S3: 1.1620 | R3: 1.1900 |
