EURUSD -bulls hold grip for further gains, shallow correction likely to precede fresh push higher

EURUSD ticked to new 2024 high (1.1088) on Tuesday, but bulls show signs of fatigue after strong rally in past two days.

Fundamentals remain supportive as Eurozone trade surplus strongly widened in June and inflation remained elevated in July, signaling further gains after correction.

Bullish daily studies contribute to positive outlook, but overbought conditions and momentum turning south from new highs warn that bulls might be running out of steam.

Dips should be ideally contained by supports at 1.1000/ 1.0985 zone (broken psychological barrier, reverted to support and daily Tenkan-sen) to keep larger bulls intact for acceleration through 1.1105 (55MMA), towards 1.1139 (Dec 2023 high), guarding 1.1220 (100MMA) and 1.1275 (2023 high).

Close above cracked 200WMA (1.1063) to generate fresh bullish signal.

Res: 1.1088; 1.1105; 1.1139; 1.1220
Sup: 1.1063; 1.1021; 1.1000; 1.0985