Capitalizing on fresh signs of a shift to a dovish stance in US monetary policy the Euro manage to see a follow through breakout Wednesday closing in on the highs for the year. Further stoking dollar bears is the latest beige book report indicating 5 of the 12 Fed districts are reporting flat or declining economic activity. That said any further upside may be limited given that we have an ECB meeting today, and while no rate cuts are expected we would like to point out that it was the ECB that sparked the current easing cycle.
Resistance
- 1.09982 – High for the Year
- 1.09812 – High for March
- 1.09534 – Daily Consolidation Highs
Support
- 1.09218 – Intraday Consolidation High/Low
- 1.08714 – Intraday Consolidation Low
- 1.08451 – Daily Consolidation High
With a strong resistance immediately above prices our immediate bias is to look for a rejection from 1.09534. Long wick in the hourly charts or a break of 1.09218 may be considered as a bearish entry point. Bulls for their part are best advised to look at 1.09534 careful as a push above the said price after the ECB rate decision may signal a run for the highs in December 2023.
