EUR/USD Outlook: Strong Bullish Signal On Break Above Major Resistances

Technical analysis of Forex market

The Euro cracked psychological 1.1300 barrier in extension of strong post-Fed rally on Thursday, which broke through key barriers at 1.1279/84 (daily cloud top / broken bear-trendline / Fibo 61.8% of 1.1347/1.1181 fall).

Euro’s sentiment improved strongly after Fed confirmed its dovish stance and readiness to cut interest rates.

The single currency advanced 0.9% on Wednesday and Asian / European sessions on Thursday and shows scope for further rise as studies turned positive and maintain strong bullish momentum on daily chart.

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Close above daily cloud top is needed to confirm scenario and unmask key barriers at 1.1347 (7 June high / 200WMA) and 1.1353 (200SMA).

Broken daily cloud top marks strong support which should keep the downside protected and guard other pivotal supports at 1.1265 zone (10/100SMA’s / daily Tenkan-sen).

Res: 1.1308; 1.1347; 1.1353; 1.1390
Sup: 1.1279; 1.1265; 1.1245; 1.1225

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