EUR/USD Price Analysis: Rallies to fresh 3-week tops, around 1.1000 mark ahead of FOMC minutes

• Some renewed USD selling bias assisted EUR/USD to continue gaining traction on Wednesday.
• The momentum lifted the pair to the top end of a multi-week-old trading range, around 1.1000.
• A sustained move beyond 200-DMA (1.1015-20 region) needed to confirm a bullish breakout.

The intraday USD selling pressure picked up pace during the early North American session and lifted the EUR/USD pair to near three-week tops, around the 1.0985 region. The mentioned level marks the top end of a multi-week-old trading range, which is closely followed by the key 1.1000 psychological mark and the very important 200-day SMA.

With technical indicators on the daily chart gaining traction in the positive territory, a convincing breakthrough might be seen as a fresh trigger for bullish traders. However, oscillators on hourly charts are already flashing slightly overbought conditions and warrant some caution before positioning for any further appreciating move.

Hence, it will be prudent to wait for a sustained strength above the 1.1015-20 barrier (200-DMA) in order to confirm a near-term breakout and placing fresh bullish bets. The pair might then accelerate the momentum towards reclaiming the 1.1100 mark en-route the 1.1145-50 supply zone, with some intermediate resistance near the 1.1040 region.

On the flip side, any meaningful pullback below the 1.1055 level might now be seen as a buying opportunity and help limit the downside near the 1.0910-1.0900 zone.

EUR/USD daily chart

Technical levels to watch