📊 Market Analysis: Will EUR/USD Experience an Uptrend Following the Fed's Surprise Rate Cut?

Product: EUR/USD

Prediction: Increase

🟢Fundamental Analysis:

EUR/USD hit a new high for September after the Fed surprised markets with a 50 bps rate cut on Wednesday, boosting risk appetite and sparking buying. This marked the first rate cut in over four years. Afterward, markets cooled, with Fiber returning to the 1.1100 level. The Fed's updated dot plot now projects the Fed Funds rate at 4.4% by the end of 2024 and 3.4% by 2025, down from previous forecasts of 5.1% and 4.1%.

🔵 Technical Analysis:

EUR/USD faces resistance at 1.1189 (Sept 18 high), 1.1201 (2024 top), and 1.1275 (2023 peak). On the downside, key support levels are 1.1001 (Sept low), the 55-day SMA at 1.0975, and the 200-day SMA at 1.0867. The pair remains in an uptrend as long as it stays above the 200-day SMA. Short-term consolidation is possible, with resistance at 1.1189, 1.1201, and 1.1275, and support at 1.1078 (55-SMA), 1.1049 (200-SMA), and 1.1001. The RSI has risen above 64.

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