EUR/USD holds its gains at a three-month high on Thursday, a second straight day of advance after Wednesday's sharp rally. Bulls stay in control above key technical levels, with analysts pointing to a limited pullback before another push higher.
EUR/USD extends a steep ascent into a second consecutive day, trading at a three-month high on Thursday. Bulls hold their grip after Wednesday's 0.85% advance, the biggest daily gain since March 19.
The pair generated bullish signals after breaking above the 200-day moving average at 1.1628 and the 61.8% Fibonacci retracement of the 1.1849/1.1324 range at 1.1648, then probing through the round-figure barrier at 1.1700.
Dips tied to partial profit-taking are likely to stay limited, ideally contained by the broken 61.8% Fibo level at 1.1648, which would keep bulls intact and offer better levels to re-enter the bullish market for an extension toward the 76.4% Fibonacci mark at 1.1725 and the 1.1800 zone, the early May lower platform.
Daily studies are firmly bullish but overbought, a combination that points to a limited pullback ahead of a fresh push higher. Caution is warranted on dips below the 200-day moving average, which could weaken the near-term structure.
Source: ActionForex
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