EURUSD continued to benefit from growing expectations of an end of Fed’s tightening cycle and talks about rate cuts and hit new multi-week high on Tuesday.
Fresh extension higher cracked important Fibo resistance at 1.0959 (61.8% retracement of 1.1275/1.0448 downtrend) the last obstacle on the way to psychological 1.10 barrier.
Bulls remain firmly in play on daily chart (very strong positive momentum / multiple MA bull-crosses) but overbought conditions warn of possible strong headwinds at this zone, which may pause bulls for consolidation.
Dips should find ground above broken Fibo 50% (1.0862) and a higher base at 1.0830 zone to keep larger bulls in play for further gains, with break of 1.0959/1.1000 pivots to spark fresh acceleration higher.
Fed minutes is the key release today, as markets expect more details about the US central bank’s next steps, while ECB’s President Lagarde speech (due later today) will be also closely watched.
Res: 1.0959; 1.1000; 1.1065; 1.1080.
Sup: 1.0899; 1.0862; 1.0824; 1.0813.
