EURUSD – bulls tighten grip after strong post-US CPI rally and look for further upside
EURUSD is holding near new 2023 high and the highest since Apr 2022 on Thursday morning, following 1.1% advance on Wednesday (the biggest daily gains since Feb 1).
Weaker than expected US inflation in June added pressure on dollar on growing expectations that Fed’s tightening cycle may end soon and lifted the single currency.
Bulls neared barrier at 1.1182 (200WMA) and eye next target at 1.1223 (Fibo 61.8% retracement of 1.2266/0.9535 downtrend) but may take a breather for consolidation before resuming higher, as daily studies are overbought.
Former top (1.1095) now marks initial support, followed by 5DMA (1.1050) which should contain dips and guard lower pivot at 1.10 (psychological / 20DMA).
Res: 1.1182; 1.1204; 1.1223; 1.1271
Sup: 1.1150; 1.1095; 1.1050; 1.1000