EURUSD remains firm post ECB, may show hesitation ahead of key 1.1713/35 barriers on o/b conditions
The Euro remains firm and extends gains on Friday, heading towards key barriers at 1.1713/35 (Fibo 61.8% of 1.2567/1.0340 downleg / Fibo 38.2% of 1.3992/1.0340 fall).
The Euro was inflated by comments from the ECB President Draghi on Thursday, when the central bank left its interest rates and QE programme unchanged and setting no precise date for discussion about tapering. However, Draghi’s remark about further discussion in autumn was seen as hawkish and boosted the single currency, which holds in an uninterrupted ascend since early April. Shallow dips in the rally of past few month confirm the strength of the rally which may extend further on firm break above 1.1713/35 pivots.
Meanwhile, overbought conditions on larger timeframes (daily / weekly) suggest that the pair may enter consolidative phase under 1.1713/35 barriers. Extended downside attempts should be ideally contained at 1.1500 zone, former strong barrier, now reverted to support.
However, correction could extend towards 1.1350/1.1300 zone before broader bulls resume. Break of key 1.1713/35 barriers is needed to signal base at 1.0350/1.0450 zone and spark stronger correction of 1.3992/1.0340 (May 2014 / Jan 2017 descend) towards psychological 1.2000 barrier, also the base of descending monthly Ichimoku cloud).
Res: 1.1676; 1.1713; 1.1735; 1.1800
Sup: 1.1618; 1.1583; 1.1556; 1.1523