EURUSD

The Euro surged above 1.1100 barrier during Asian session on Wednesday, extending strong rally on Tuesday when the single currency was up nearly 1% against the dollar in the biggest one-day rally since 03 Mar.
The greenback fell sharply against the basket of major currencies on Tuesday, driven by report that President Trump shared sensitive information with Russia at last week’s meeting.
The latest political turmoil in the US comes a week after President Trump dismissed his FBI Chief and deepened after news that came out overnight showed that President Trump asked then FBI Director to end a probe into Trump’s former national security advisor.
The reports significantly weakened confidence in implementation of US president’s plan for aggressive stimulus program that had been focused since Trump stepped in the White House.
Raising questions over whether Trump’s latest actions could be seen as obstruction of justice and may trigger charges against Trump put the US dollar under strong pressure.
The EURUSD pair extends strong rally in the fourth straight day, taking out important resistances at 1.1000/20 (psychological barrier / former high of 07 May), as fresh acceleration higher emerged above weekly cloud and broke above 1.1100 (round-figure barrier).
The pair is focusing at next pivotal barrier at 1.1127 (Fibo 61.8% of 1.1614/1.0339 descend), break of which is needed to generate another strong bullish signal.
Fresh bullish sentiment on political turmoil in the US is reinforced by bullish technical studies, seeing scope for further upside action which may extend towards 1.1300 zone (09 Nov 2016 spike high).
Meantime, corrective easing could be anticipated on overbought slow stochastic on daily chart, which so far did not show signs of turning lower.
Broken weekly cloud top now acts as good support at 1.1067 with extended dips expected to remain above former key barriers, now supports at 1.1020/00.

Res: 1.1127; 1.1201; 1.1250; 1.1300
Sup: 1.1078; 1.1067; 1.1020; 1.1000