EUR/USD looks for a firm break of the 200-hour moving average
The pound is rising and is inadvertently leading to a rise in the euro and a fall in the dollar as a result. The greenback is trading to session lows right now against the pound, euro, gold, swissie, and loonie as the session gets underway.
For EUR/USD, the pair now looks to firmly break above the 200-hour MA (blue line) and that would turn the near-term bias more bullish. The pair’s jump higher also threatens a break of the 50.0 retracement level @ 1.1358 and that has helped to act as a secondary defense level for sellers so far this week.
If buyers can hold a break above 1.1358, the next key level to look out for will be resistance and offers around 1.1390-00.
I’m still feeling a bit iffy of the rise here as further Brexit negativity has the potential to temper with the gains but as I’ve always said, technical breaks are hard to ignore. And a more bullish near-term bias makes for a good case for the pair to run a little higher until that negative catalyst hits.