EURUSD looks for test of 2023 high after limited correction

EURUSD cracked 1.1200 barrier after Friday’s 0.75% rally (the biggest daily gain since Aug 2) and hit new 2024 high early Monday.

Bulls remain firmly in play after strong advance in past two weeks and on track for the biggest monthly gain since November 2022, as weakening dollar on strong Fed rate cut signals, continues to underpin the single currency

Next target at 1.1275 (2023 high / Fibo 61.8% of larger 1.2349/0.9535 downtrend) is coming in focus, with firm break here to generate strong signal of bullish continuation of an uptrend from 0.9535 (Sep 2022 low) which was paused for a multi-month consolidation.

Meanwhile, bulls are likely to take a breather as the action was repeatedly capped by falling and thickening monthly cloud, with overbought daily studies adding to signals of limited correction which should offer better buying opportunities.

Higher base at 1.1100 zone (Aug 21/22/23 low) reinforced by bull trendline and rising 10DMA marks solid support, where dips should find firm ground.

Res: 1.1201; 1.1221; 1.1239; 1.1275
Sup: 1.1152; 1.1100; 1.1084; 1.1039