EUR/USD Surges Past 1.1600 as Bulls Retain Control
The EUR/USD pair has continued its momentum from last week's bounce, breaking above key technical levels and gaining strong follow-through traction. This comes as traders scaled back expectations for an immediate interest rate hike by the US Federal Reserve (Fed) after data pointed to cooling inflation and a slowdown in consumer spending.
This shift has led to a broadly weaker US Dollar (USD), which is supporting the EUR/USD pair's advance. Spot prices have now surpassed the 1.1600 round figure, with the Relative Strength Index (RSI) near 67 indicating a firm buying momentum.
From a technical perspective, the pair has confirmed an intraday breakout through the 100-day Simple Moving Average (SMA) and the 50% Fibonacci retracement level of the April-June decline. The Moving Average Convergence Divergence (MACD) histogram is also showing a positive, mildly rising trend.
Risks of overextension might cap the EUR/USD pair near the 200-day SMA at 1.1630 and the 61.8% retracement at 1.1645. However, a sustained break above this band could open the way toward the 78.6% retracement at 1.1732 and ultimately the cycle high near 1.1843.