FxWirePro: EUR/USD to trade higher as Fed blinks,good to buy on dips

EURUSD jumped more than 250 pips in the month of Jan after hitting low of 1.13065.The main reason for strength in Euro was dovish comments from Fed officials. In 2018 Fed hiked  rates 4 times and expected to hike rates two more times in 2019. But US Fed chairman has told to American Economic Association that the Fed “will be patient” with monetary policy as it watches how US financial markets. This shows Fed might give a pause in 2019 and which is slightly negative for US dollar. EUR/USD hits high of 1.15697 and is currently trading around 1.15280.

On the lower side major support is around 1.1475-78 (100- day MA) and any daily close  below confirms further weakness and a jump till 1.1435 (38.2% fib)/1.1418 (55- day EMA)/1.13505. The pair should break below 1.1300 for further weakness.

The near term major resistance is around 1.15900 (61.8% fib) and any break above targets 1.1620/1.1635 (200- day MA). Any close above 1.16350 confirms further bullishness and a jump till 1.1700/1.1733/1.18150.

It is good to buy on dips around 1.1500 with SL around 1.1435 for the TP of 1.17330/1.1815.