- EURUSD reclaims 200-day SMA following dovish Fed signals
- ECB meeting later today could spur some volatility
- Momentum indicators are skewed to the positive side
EURUSD had been experiencing a solid downside correction from its recent three-month peak of 1.1016, which ceased just shy of the 50-day simple moving average (SMA). In the past few sessions though, the pair has been regaining some ground, with the rebound accelerating on the back of the dovish FOMC meeting.
Considering that both the RSI and stochastics are showing signs of strengthening positive momentum, the advance could extend towards the November resistance of 1.0964. Conquering this barricade, the bulls could attack the three-month peak of 1.1016 ahead of the February high of 1.1032. A violation of that region could open the door for the April-May resistance of 1.1094.
Alternatively, if the bears strike back and push the pair lower, initial support could be found at the 200-day SMA, currently at 1.0827. Further retreats could then stall around 1.0765, which served both as support and resistance in September. Failing to halt there, the price may slide towards 1.0693.
In brief, EURUSD has resumed its near-term firm tone following the dovish Fed rhetoric on Wednesday, while investors are eyeing the upcoming ECB meeting for fresh directional impetus.
