EUR/USD Pair Sees Short-Term Consolidation Amidst Dovish Fed Comments

Following the market's perception of the Fed's dovish comments, coupled with the loss of strength in the dollar index, the currency pair experienced a rally of approximately 150 pips, but momentum has since diminished, indicating the beginning of a short-term consolidation movement. From this perspective, for the rally to continue, the pair needs to rise above the level of 1.0810 and sustain its position there. After establishing stability at this level, the next level to watch is the descending trendline on the daily chart, which sits at 1.0840. A break above 1.0840 could turn the outlook positive on the daily chart and potentially lead to the next target at the peak from April 9, ranging from 1.0885 to 1.0900. However, if a pullback ensues, the initial support level to monitor is 1.0745. Failure to maintain momentum at this level and a breach to the downside would set the next support level at 1.0720. If sustainability is not achieved at this level as well, a decline to the range of 1.0675 to 1.0665 could be considered normal.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.0900	1.0840	1.0810	1.0745	1.0720	1.0665