Moves up toward 100/200 hour MAs
The EURUSD is trading near the middle of a range, but overall still near low levels for the year (and going back to mid 2017).
Looking at the daily chart, the 1.1100 to 1.1110 is home to highs from April, May and July, before dipping below at the end of July (see green circles in the chart above). In August the price traded above and below that area. The corrective high from last week, stalled right back in the middle of that comfort ceiling and reversed lower. That area remains a key area on the topside. Stay below is more bearish. Move above and there should be more corrective action higher.
On the downside last week, the ECB meeting low was just above the low from September 3rd. Call it a double bottom at that level (at 1.0923-26)
The midpoint of the move from last week’s low to last week’s high comes in at 1.10176 (see hourly chart below). The price today has moved up and is now trading above the level at 1.1031 (new highs are printed as I type). Above sits overhead resistance defined by the 100 and 200 hour MAs at 1.1038-392 (blue and green lines in chart below). I would expect some resistance against the area on the first look. It will take a move above to solicit more momentum buying.
So, the EURUSD pair is moving higher on the day but in a bigger picture it is near the middle of the recent range. That range is near the year’s lows. Overhead resistance from the 100 and 200 hour MAs loom above and should give buyers some apprehension (with stops on a break above).