The Euro surged after the Fed delivered on a widely expected 25-bps rate cut, however, hinted a pause in future easing. Despite the hawkish Fed rate cut and Fed Chair Powell’s upbeat remarks on the US economy, the US dollar faced a sell-off across the board, as markets continue to remain worried about the impact of the rate cuts on the economy and looming US-China trade risks. Meanwhile, further upside on the Single currency remains dependent on today’s Eurozone CPIs and GDP releases. The data must beat expectations to keep this bullish momentum continue.
The Single currency bulls broke above the 50-day moving average and the 1.1150 resistance, as they are currently challenging the 1.1180 swing highs. A break above that level would open doors for further upside on this pair, possibly resuming this recent trend, which started from the beginning of October. The bears, on the other hand, are currently under water as they look to push price below the 50-day moving average once again, to halt this bullish domination.
Support: 1.1150 / 1.1130
Resistance: 1.1180 / 1.12