The Euro extended gains on Wednesday and hit fresh one year high at 1.1378, following previous day’s strong rally which marked the biggest one-day rally in 2017.
The single currency received strong support from the ECB Chief Draghi’s speech on Tuesday and accelerated through the target at 1.1300 zone, generating strong bullish signal on close well above broken 1.1300 barrier.
Bulls eye next targets at 1.1414/28 (highs of 09/24 June 2016), with 1.1614 (03 May 2016 peak) coming in short-term focus.
Meanwhile, bulls may take a breather on overbought studies. Initial supports lay at 1.1329 (session low) and 1.1300 zone (former strong barrier).
Ascending converged daily Tenkan-sen/Kijun-sen lines offer next strong support at 1.1245 zone, with 20SMA at 1.1218 expected to contain extended dips.
Res: 1.1378; 1.1400; 1.1414; 1.1428
Sup: 1.1329; 1.1300; 1.1245; 1.1218