Key points:

• Euro moves higher
• Fed decision ahead
• Resistance at $1.1660

Forex bros are casually drifting it higher but what happens next might turn the tables – immediate resistance rests at $1.1660.

📈 Euro Extends Winning Streak

• The EURUSD pair was up another 20 pips early Wednesday, marking a ninth straight day of gains as traders kept gently floating the pair higher. Slow grind, steady climb – classic December FX energy.
• The rally has added about 1.2% over the stretch, fueled by a softer dollar and rising expectations of a Fed rate cut. Momentum favors the bulls, but not without caveats.
• Immediate resistance looms at $1.1660, a level the euro failed to break in mid-November (it’s also right at the 100-day SMA). That makes it the battleground that decides whether this run continues or stalls.

🧱 Key Levels to Watch Ahead

• A clean breakout above $1.1660 could open the door to the next target: $1.1730, where sellers stepped in October 17. That’s the level euro bulls want to test next.
• Price action is tight, suggesting traders are waiting for a macro catalyst rather than forcing a breakout. Consolidation here isn’t a weakness. Rather, it’s a test of patience and positioning.
• On the flip side, any surprise dollar strength could unwind the streak quickly. Nine green days can turn into one nasty red candle fast.

🏦 Fed Data Will Set the Tone

• This Friday brings PCE – the Fed’s preferred inflation measure – and next week delivers the main event: the December rate decision.
• Traders are pricing a 25-basis-point cut with over 90% conviction, reinforcing dollar softness and giving the euro room to stretch.
• But if the data surprises hotter (or the Fed cools rate-cut expectations) the euro’s winning streak could meet resistance far stronger than $1.1660.

Source: Tradingview