EUR/USD surges further beyond 1.1400 handle, closer to overnight swing high
• The post-FOMC USD bounce turned out to be short-lived and helped regain traction.
• The latest optimism over Italy’s budget compromise further underpinned the EUR.
• Technical buying above 55-day SMA is likely to fuel the ongoing positive momentum.
The EUR/USD pair finally broke out of its Asian session consolidation phase and surged back above the 1.1400 handle, moving within striking distance of 1-1/2 week tops set in the previous session.
With few hawkish surprises from the latest FOMC statement/economic projections, the overnight US Dollar rebound turned out to be short-lived and was seen as one of the key factors that helped the pair to regain positive traction for the fourth consecutive session.
The Fed raised benchmark interest rates for the fourth time this year but lowered its rate hike forecast for 2019. The so-called 'dot-plots' now signal two hikes next year, instead of three in September, though failed to convince market participants amid concerns over the slowdown in global growth.
Meanwhile, the shared currency remained supported by Wednesday's news that Italy had struck a deal with the European Commission over its contested 2019 budget and further collaborated to the pair's strong intraday up-move of over 60-pips.
Even from a technical perspective, the pair now seems to have found acceptance above a key hurdle marked by 55-day SMA and hence, a follow-through up-move, led by some fresh technical selling amid absent influential economic releases, now looks a distinct possibility.
Technical levels to watch
Today Last Price: 1.1431
Today Daily change: 58 pips
Today Daily change %: 0.510%
Today Daily Open: 1.1373
Previous Daily SMA20: 1.1353
Previous Daily SMA50: 1.1391
Previous Daily SMA100: 1.1488
Previous Daily SMA200: 1.1703
Previous Daily High: 1.144
Previous Daily Low: 1.1357
Previous Weekly High: 1.1444
Previous Weekly Low: 1.1269
Previous Monthly High: 1.15
Previous Monthly Low: 1.1216
Previous Daily Fibonacci 38.2%: 1.1408
Previous Daily Fibonacci 61.8%: 1.1389
Previous Daily Pivot Point S1: 1.134
Previous Daily Pivot Point S2: 1.1306
Previous Daily Pivot Point S3: 1.1256
Previous Daily Pivot Point R1: 1.1424
Previous Daily Pivot Point R2: 1.1474
Previous Daily Pivot Point R3: 1.1508