EUR/USD trades softer just above the 1.1300 handle but price still holds above both key hourly moving averages
The dollar continues to remain firm in early European trading and it is keeping EUR/USD at around 1.1310 levels for the time being. The pair is weaker by about 0.2% with the low touching 1.1303 earlier as the greenback retraces some of its losses from Friday.
Of note, there are large expiries rolling off at 1.1300 in the pair today so that will help to limit downside price action in the session ahead.
Liquidity conditions are a bit on the thinner side with some European markets closed today but in any case, watch out for the 100-hour MA (red line) over the next few sessions. That level rests at 1.1270 today and sits nearby the 100-day MA @ 1.1274.
Those two levels will be critical in determining if the upside momentum in EUR/USD can extend further this week. Meanwhile, topside resistance is seen closer to 1.1366 where the 200-day MA lies currently. There’s minor resistance from Friday’s highs and light offers near 1.1350 to also take note of just in case.
Despite the dollar faring better today, it’s too early to judge that this is a return to form for the greenback. If price starts to test levels under 1.1300, I’d be more convinced of a potential downside move again in the pair. Otherwise, buyers still have reason to keep up the decent run from the end of last week for now.