In the wake of the Fed's rate decision to hold steady, EUR/USD is showcasing renewed bullish potential, mirroring the resilience seen in the GBP/USD trend. The pair's steadfast bounce from the 1.0755 support, a nexus of Fibonacci significance, suggests an underlying bullish momentum.
Technical Analysis:
The EUR/USD is currently challenging the 1.0910 resistance which is also a level of a bearish fibonacci retracement from its top. A successful breach of this threshold could pave the way for further gains, akin to GBP/USD's pursuit of its former peaks.
Market Positioning:
With the backdrop of a dovish Fed stance and the market digesting the recent NFP report, long positions are becoming increasingly attractive. The maintenance above 1.0755 support parallels GBP/USD's firm stance above 1.2559, indicating potential for an upward continuation. A definitive push beyond 1.0910 would further solidify the bullish narrative.
Our Outlook:
We maintain a bullish outlook, seeking strategic entries on pullbacks in anticipation of a sustained rally, especially in light of the Fed's recent pause in rate hikes and the lack of rate increase in yesterday's decision. The focus now turns to whether EUR/USD can maintain its strength above the critical support, setting the stage for the next leg up.
Technical Analysis:
The EUR/USD is currently challenging the 1.0910 resistance which is also a level of a bearish fibonacci retracement from its top. A successful breach of this threshold could pave the way for further gains, akin to GBP/USD's pursuit of its former peaks.
Market Positioning:
With the backdrop of a dovish Fed stance and the market digesting the recent NFP report, long positions are becoming increasingly attractive. The maintenance above 1.0755 support parallels GBP/USD's firm stance above 1.2559, indicating potential for an upward continuation. A definitive push beyond 1.0910 would further solidify the bullish narrative.
Our Outlook:
We maintain a bullish outlook, seeking strategic entries on pullbacks in anticipation of a sustained rally, especially in light of the Fed's recent pause in rate hikes and the lack of rate increase in yesterday's decision. The focus now turns to whether EUR/USD can maintain its strength above the critical support, setting the stage for the next leg up.