EURUSD is consolidating under new multi-week high on Wednesday, after bulls cleared pivotal Fibo resistance at 1.0959 (61.8% of 1.1275/1.0448 downtrend) and cracked psychological 1.10 barrier.
The Euro received fresh support from expectations that the Fed is done with rate hikes and rising bets for start of cutting interest rates in the first half of 2024.
As expected, bulls faced increased headwinds at 1.10 zone, with overbought conditions on daily chart, prompting traders to collect some profits.
Technical picture on daily chart is increasingly bullish and supports the pair for further advance, as close above 1.0959 and probe through 1.10, generated fresh positive signals.
Dips should be limited and positioning for fresh push higher, with rising 10DMA (1.0926) to ideally contain and offer better levels to re-enter bullish market for acceleration through 1.10 pivot at test of next target at 1.1080 (Fibo 76.4% of 1.1275/1.0448).
Caution on break and close below 10DMA which would put larger bulls on hold for deeper correction.
German and EU inflation data, due today and Thursday, will be focused for fresh direction signals.
Res: 1.1000; 1.1017; 1.1065; 1.1080.
Sup: 1.0959; 1.0926; 1.0882; 1.0852.
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