• EURUSD accelerates for the second consecutive day; hits the highest level since December 2023

• Overbought signals detected but not confirmed yet; bulls need a close above 1.1045

EURUSD spiked to a new eight-month high of 1.1045 in the aftermath of a slightly weaker-than-expected US CPI report on Wednesday, extending Tuesday’s impressive rally which led the price above the tough trendline zone of 1.0950-1.0975.

The 1.1045 area capped bullish actions a couple of times during 2023 and it could resume its resistance role as the RSI is heading into the overbought region above 70 and the stochastic is approaching its 80 overbought level too.  Yet, the indicators have yet to show any signs of weakness, keeping the short-term bias on the positive side for now.

A close above 1.1045 could provide direct access to the 1.1100 number. If December’s high of 1.1138 gives way too, the pair might stage another notable rally towards the 1.1230 barrier, which the bulls could not successfully claim during last summer.

Should the rally take a breather, the price might retest the 1.0940-1.0975 trendline region and the 23.6% Fibonacci retracement of the October-December 2023 upleg. Failure to pivot there could trigger a downfall towards the 20-day simple moving average (SMA) and the 38.2% Fibonacci of 1.0874, while lower, the sell-off might stabilize near the 200- and 50-day SMAs and the short-term ascending trendline at 1.0815.

In brief, EURUSD has resumed its bullish trend from mid-April and the ongoing rally could gain extra legs in the coming sessions, unless the 1.1045 region stays a tough obstacle.