EUR/USD Price Analysis: Euro ignores hawkish Fed talks to refresh multi-month top, focus on 1.1280

• EUR/USD remains firmer at the highest levels in 16 months, picks up bids to renew multi-month peak of late.
• Hawkish comments from Fed’s Waller fail to prod Euro bulls as inflation concerns flag Fed policy pivot.
• Key Fibonacci retracement level challenge EUR/USD bulls amid overbought RSI.
• Euro sellers need validation from 1.1180 and mid-tier US/EU data for return.

EUR/USD picks up bids to refresh a 16-month high near 1.1235 during early Friday, rising for the seventh consecutive day to brace for the biggest weekly gain since November 2022. In doing so, the Euro pair fails to justify hawkish comments from Federal Reserve Governor Christopher Waller, as well as the cautious mood ahead of the mid-tier data from the US and Eurozone.

Also read: EUR/USD prods 16-month high past 1.1200 on broad US Dollar weakness, EU/US data eyed

Apart from the Fed concerns and slightly offbeat sentiment, the overbought RSI conditions also challenge the EUR/USD bulls as they approach the key 1.1280 hurdle comprising the 61.8% Fibonacci retracement of the pair’s January 2021 to September 2022 downturn.

It’s worth noting, however, that a clear upside break of 1.1280 enables the EUR/USD buyers to aim for the previous yearly high of near 1.1500.

Following that, the October 2021 low and the 78.6% Fibonacci retracement level, respectively near 1.1530 and 1.1760, will be in the spotlight.

On the contrary, a convergence of the 200-week SMA and previous resistance line stretched from May 2023, close to 1.1180 at the latest, put a floor under the EUR/USD price amid bullish MACD signals.

In a case where the EUR/USD remains bearish past 1.1180, tops marked in April and February, close to 1.1095 and 1.1030, will act as the final defense of the bulls.

EUR/USD: Weekly chart

Trend: Limited upside expected