EURUSD – bulls are taking a breather under new 2024 high, eye fresh signals from Fed

EURUSD reduced speed after steep rally in past three days which hit new 2024 top (1.1132) just ticks ahead of Dec 2023 top (1.1139).

The single currency continues to benefit from risk appetite and weak dollar on Fed rate cut expectations, with release of FOMC minutes today, to shed more light on the depth of policy easing.

Overextended daily indicators signal that larger bulls may pause for consolidation, with dips likely to be shallow on firmly bullish sentiment, while dovish Fed minutes to add fresh support. Breach of 1.1139 pivot to open way for attack at 2023 peak (1.1275).

Alternative scenario sees less dovish than expected stance of Fed as a trigger for Euro’s deeper drop, with loss of 1.10 support zone (10DMA / psychological) to risk downside acceleration.

Res: 1.1132; 1.1139; 1.1220; 1.1275;
Sup: 1.1072; 1.1021; 1.1000; 1.0949