EUR/USD moves back up towards the 200-hour moving average
Although sellers managed to regain near-term control on a break below both key hourly moving averages, support from the 38.2 retracement level @ 1.1165 is still helping to keep buyers in the game for the time being.
Of note, we’re seeing price bounce off that area towards a test of the 200-hour MA (blue line) @ 1.1186 again. For sellers, they have to keep price below that in order to maintain the more bearish near-term bias.
Any further downside break requires price to hold below the 38.2 retracement level pointed out above as there isn’t much stopping the pair from a move back towards 1.1100.
Meanwhile, for buyers, a break above the 200-hour MA will see near-term bias turn more neutral allowing for a potential move towards the 100-hour MA (red line) and 1.1200.
Any further upside needs to observe a break of the near-term trendline resistance highlighted in the chart, currently seen at 1.1212 with the 100-day moving average @ 1.1223 also capping topside momentum still since last week.
Looking ahead, US-China trade rhetoric is the likely factor to push the pair towards any potential break but I reckon the next play is to side with the technicals upon said break.