The US dollar plunged after the Fed’s 25 bp hike raised hopes that the peak rate is getting closer. On the daily chart, the euro has bounced off the 20-day SMA (1.0800) as it sought to preserve its gains above last May’s high of 1.0780. A sharp break above 1.0910 has attracted momentum buyers, sending the pair towards 1.1100 which sits in the supply zone from the April sell-off. As the RSI ventures into the overbought area, more buyers may see a pullback as an opportunity to tag along with 1.0900 as a fresh support.
