EUR/USD still caught in a bind in European morning trade

Technical Analysis

EUR/USD price action rests in between the key hourly moving averages

EUR/USD H1 13-05
See here for global coronavirus case data

Buyers went in search of an upside break in overnight trading but fell short amid minor resistance around 1.0885 with the 200-bar moving average on the 4-hourly chart also helping to limit gains in the euro yesterday.

That saw price fall back under the 200-hour MA (blue line) and the near-term bias in the pair has since remained more neutral, with price action seeing a range of just 26 pips today.

The low did move to test the 100-hour MA (red line) but buyers defended the level, leaving for more tepid trading during the session so far.

US futures are building some modest momentum, trading up by 0.7% currently and that is putting some light pressure on the dollar – particularly against the aussie and loonie.

EUR/USD has also moved off its lows but price action remains largely contained.

For buyers, there is still much work to do and I reckon a break above 1.0900 is needed to establish any real conviction for a further upside break.

For sellers, they have been constantly knocking on the door of a firm downside move under 1.0800 since last week but it still hasn’t quite materialised for them just yet.

Support levels at 1.0767-85 will be key to watch if price starts to dip under the 1.0800 level.

Let’s block ads! (Why?)

Forexlive RSS Breaking technicalanalysis feed

Leave a Reply

Your email address will not be published. Required fields are marked *