EUR/USD bulls are pausing below the new 2024 high, awaiting fresh cues from the Fed

EUR/USD momentum has slowed after a steep three-day rally that hit a new 2024 high at 1.1132, just shy of December 2023’s peak at 1.1139.

The euro continues to benefit from risk appetite and a weaker dollar driven by Fed rate cut expectations, with today’s release of the FOMC minutes expected to offer more clarity on the extent of policy easing.

Overbought daily indicators suggest that the rally may pause for consolidation, though any dips are likely to be shallow given the firmly bullish sentiment. Dovish Fed minutes would provide additional support, with a break above the 1.1139 pivot opening the door to a potential test of the 2023 high at 1.1275.

Alternatively, if the Fed’s stance is less dovish than expected, the euro could face a deeper pullback, with a break below the key 1.10 support zone (10-day moving average and psychological level) likely to trigger downside acceleration.

Res: 1.1132; 1.1139; 1.1220; 1.1275;
Sup: 1.1072; 1.1021; 1.1000; 1.0949