EUR/USD touches a high of 1.1344 on the day
Price is now threatening to move above the 100-hour MA (red line) as the dollar is losing some ground against the rest of the major currencies bloc. GBP/USD is also up to a high of 1.2620 while AUD/USD and NZD/USD are also making new highs for the day at 0.7185 and 0.6818 respectively. Even USD/JPY has slipped to a low of 113.29 currently.
It’s a big week for the dollar with the FOMC meeting coming up on Wednesday and there is a slight expectation that the Fed will turn more dovish in terms of language even as they are to deliver another rate hike. In the build up to the meeting decision, expect more dollar moves like the one we’re seeing now as traders look to gauge expectations and price in market sentiment ahead of time.
As for current levels, EUR/USD buyers are looking to break the near-term bearish bias and if they can hold above 1.1338, then they’ll be successful. The next near-term resistance level then would be the 200-hour MA (blue line) @ 1.1356. But as mentioned earlier, price is still sitting in the ‘comfort zone’ between 1.1300 and 1.1400 currently and there’s not much to read into the price movement in this region.