- EURUSD built on this week’s post-US election strong bounce from the 1.1600 handle.
- Positive technical indicators support prospects for an extension of the strong move up.
- Sustained strength beyond the 1.1870-80 zone will be seen as a fresh trigger for bulls.
- Dips towards 1.1800 handle might be seen as a buying opportunity and remain limited.
Having shown some resilience below 100-day EMA and defended the 1.1600 handle earlier this week, EURUSD rallied back closer to the 1.1870-80 heavy supply zone. The mentioned region marks the top end of a near two-month-old trading range, which if cleared decisively should be seen as a fresh trigger for bullish traders.
Meanwhile, RSI and MACD indicators on the daily chart have just started gaining positive traction. This, in turn, supports prospects for an eventual breakout on the upside and an extension of the ongoing positive momentum. The constructive outlook is further reinforced by the sustained selling bias around the USD.
Hence, a subsequent move beyond the 1.1900 mark, en-route the next major hurdle near the 1.1935 region, looks a distinct possibility. Some follow-through buying should pave the way for additional gains and assist the pair to aim back to reclaim the key 1.2000 psychological mark.
On the flip side, any meaningful pullback might now be seen as a buying opportunity and remain limited near the 1.1800 mark. That said, sustained weakness below might prompt some technical selling and turn the pair vulnerable to accelerate the fall back towards the 1.1700 handle.