EUR/USD continues to hold above the 200-hour moving average
Price did test the 200-hour MA (blue line) in overnight trading after a break higher and buyers defended the level, holding on to the more bullish near-term bias. Right now, price is hovering above the 1.1200 handle and sits just under swing region resistance around 1.1225-30.
It’s going to be a bit of a quiet session in Europe with most major markets closed besides London, so expect the trading range to possibly stay narrow before North American traders join in the fray.
Of note today, there are large expiries resting at 1.1240-50 in the pair so that could be a point of interest for buyers to drive up price briefly. With little on the economic calendar and markets keeping one eye on the FOMC meeting later, that is something to be wary about amid thin liquidity conditions in the session ahead.
As for downside levels, the 200-hour MA @ 1.1197 will be the key area to watch out for as we start to clear the fog following month-end flows yesterday. A break below that will see buyers lose near-term control and allow sellers to creep back in again.