EURUSD Outlook: Euro Bounces above 1.18 after Hawkish Draghi

Technical analysis of Forex market

The Euro retested 1.1800 barrier on fresh acceleration higher after hawkish remarks from ECB President Draghi. Bounce from session low at 1.1724, posted in early Europe, cracked Friday’s high at 1.1802 (the highest since 14 June) sidelining risk of deeper pullback and returning near-term focus to the upside. Fresh bulls eye target at 1.1848 (14 June high) but require daily close above 1.1780 (broken Fibo 38.2% of 1.2555/1.1300 fall) for confirmation of bullish signal. Completion of asymmetric inverse Head and Shoulders pattern on daily chart adds to positive signals, as growing bullish momentum underpins the action. Violation of 1.1848 target could open way for extension towards 1.1928 (50% of 1.2555/1.1300) and bring psychological 1.20 barrier in focus (1.1996 is 14 May high). Dip-buying above rising 5SMA (1.1734) remains favored near-term scenario.

Res: 1.1848; 1.1900; 1.1928; 1.1996
Sup: 1.1780; 1.1750; 1.1734; 1.1689