EUR/USD isn’t doing much so far today, trapped in a 15 pips range
The single currency has been somewhat resilient over the past week, trading well against the dollar despite all the risk-off flows in markets as a result of US-China trade tensions. Buyers have done well to keep up the near-term bullish bias and is continuing to do so as we begin the new week.
Price is hovering around 1.1227 to 1.1242 today as light offers around 1.1250 is helping to keep gains in-check, alongside the 1 May high of 1.1265. Those will be levels to watch out for in the event of any upside move later today/this week.
Meanwhile, any downside move will firstly have to get past the key hourly moving averages closer towards the 1.1200 handle. The 100-hour MA (red line) sits @ 1.1211 while the 200-hour MA (blue line) sits @ 1.1203 currently.
Of note, there are also large expiries rolling off at 1.1200 so that should help to limit any downside pressure in the session to come. With markets still in a cautious mood, it’s hard to justify a clean upside break for the pair. Hence, just be wary of any potential drop if the cautious tones start turning into more risk-off flows later on (that will help the dollar).
But as mentioned above, watch out for some support around the key near-term levels highlighted. If sellers manage a break below those, then we can expect a further extension towards other support areas below 1.1200.