EUR/USD climbs above its 100-hour moving average
Although the timing of the move comes alongside the report here, I reckon this is more to do with some positioning flows ahead of the FOMC meeting minutes release later today.
There isn’t much else happening in markets at the moment as the yen and dollar are holding weaker on the session. The former owes to a move higher in yields with 10-year Treasury yields now up by 1.3 bps to 1.543%.
Meanwhile, the greenback is weaker across the board amid light flows with EUR/USD now testing a break above the 100-hour MA (red line) @ 1.0774 after buyers defended the 200-hour MA (blue line) in overnight trading.
Hold a break above the 100-hour MA and buyers will regain near-term control ahead of resistance around 1.0994-00.
I don’t view this as a material shift in dollar sentiment for today but let’s see how price action plays out ahead of the FOMC meeting minutes release before we get to US CPI data and US-China trade talks tomorrow.
For EUR/USD, buyers look to be building some conviction but unless price firmly breaks above 1.1000, it’s hard to label this as an upside breakout for now.