Euro Taking Advantage of Weak US Dollar

The euro jumped against the US dollar to achieve strong gains. To be reminded, we committed to the intraday neutrality in the previous analysis, indicating that the activation of long positions depends on confirming the breach of 1.1770 resistance, in order to enhance the chances of the rise towards 1.1800 and then 1.1870, to record the highest level at 1.1860.

Technically, looking at the 4-hour chart, we see the pair is stable above 1.1870 resistance with positive catalysis from the 50-day moving average with positive RSI signs on short time intervals.

Consequently, the bullish bias may be likely today, knowing that surpassing the upside to 1.1870 is a catalyst that strengthens chances of a bullish move towards 1.1945 as a first target, followed by 1.1980.

The return of intraday trading again below 1.1870 delays the bullish chances, but does not negate it, and we may witness a re-test of 1.1720, Fib 23.60%, before attempting to rise again.

Warning: We are awaiting the US employment data scheduled for today and it may have a heavy impact on Euro’s moves.

S1: 1.1735	R1: 1.1885
S2: 1.1645	R2: 1.1945
S3: 1.1585	R3: 1.2035