Bulls looking to conquer the 1.1100 mark

EUR/USD Current Price: 1.1083

• The persistent bullish mood keeps the US dollar under strong selling pressure.
• Financial markets welcome stable macroeconomic data and a future interest rate cut.
• EUR/USD is technically overbought but may make higher highs in the near term.

EUR/USD continues to make fresh 2024 highs, approaching the 1.1100 mark during European trading hours. An upbeat mood and the market’s belief that the Federal Reserve (Fed) will pull the trigger in September put pressure on the US dollar. As the date approaches, global stocks are accelerating their momentum, with Asian and European indexes posting substantial gains, reflecting the upbeat sentiment.

Meanwhile, Germany released July’s producer price index (PPI), which rose 0.2 percent on the month, while falling 0.8 percent from a year earlier, in line with market expectations. In addition, the Eurozone confirmed that the Harmonized Index of Consumer Prices (HICP) rose by 2.9% year-on-year in July. Finally, the EU reported that the June Current Account recorded a seasonally adjusted surplus of €51 billion. The figures had no impact on the euro.

The American session will not bring data from the United States (US), although some members of the Fed will be on the lookout. If they pave the way for a September rate cut, further USD weakness is the most likely outcome.

EUR/USD short-term technical outlook

Technically, the EUR/USD uptrend looks set to continue. The daily chart shows the pair extending its lead beyond all its moving averages, with the 20 Simple Moving Average (SMA) heading north almost vertically, well below the current level while above the longer ones. Technical indicators, meanwhile, have lost their directional momentum and are consolidating into overbought levels, not another sign of upside exhaustion.

The 4-hour chart shows bulls maintaining short-term pressure. The Relative Strength Index (RSI) indicator is aiming slightly higher around 75, while the Momentum indicator is consolidating as the pair moves below its intraday high. However, moving averages are clearly bullish, well below current levels, in line with continued buyer pressure.

Support levels: 1.1050 1.1020 1.0985

Resistance levels: 1.1090 1.1120 1.1160