The Euro remains tall against dollar and consolidating under initial barrier at 1.1179 (21 Oct high), following strong post- dovish Fed bullish acceleration. The Fed cut interest rate by 0.25% as expected, but chief Powell, in his press conference, said that current policy stance is appropriate and indicated that the central bank may pause rate cuts. The dollar was hit across the board by Fed’s decision, with renewed uncertainty over US/China trade conflict (as summit in Chile where two countries were supposed to meet and sign the first phase of a deal, was cancelled). Bullish daily studies add to positive sentiment and keep near-term focus at the upside. The notion is supported by Wednesday’s long-tailed bullish candle, formed after strong downside rejection and repeated close above daily cloud. Bulls look for break above 1.1179 to open key barriers at 1.1197 (200DMA) and 1.1208 (Fibo 61.8% of 1.1412/1.0878), violation of which would unmask the base of falling thick weekly cloud (1.1310). Dips are expected to offer better buying opportunities while holding above daily Tenkan-sen (1.1026). Break lower would soften near-term tone and risk dip towards key support at 1.1075 zone (higher base, reinforced by rising 20DMA).
Res: 1.1170, 1.1179, 1.1197, 1.1208
Sup: 1.1151, 1.1026, 1.1103, 1.1075
