EUR/USD outlook: Bulls are taking a breather under new 2024 high, eye fresh signals from Fed

Slobodan Drvenica Windsor Brokers

EUR/USD

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.

Interested in EUR/USD technicals? Check out the key levels

1. R3 1.1208
2. R2 1.1169
3. R1 1.115
PP 1.1111
1. S1 1.1091
2. S2 1.1052
3. S3 1.1032

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.