Price continues to trade in and around the 100-day MA
The pair is trading at session highs right now with the dollar a little softer ahead of European trading but it’s been a familiar case for EUR/USD since last Thursday. The battleground is still the same with price continuing to hit a ceiling when met with daily resistance from the 100-day MA (red line). Currently, that sits at 1.1667 so once again this will be a key level to watch ahead of the close today.
But more importantly, buyers need to find a way to move above 1.1700 and hold a break there in order to breed confidence for a move away from the 100-day MA.
Trading EUR/USD is much like trading the dollar index (or vice versa). Near-term bias in the pair continues to favour buyers:
Sellers attempted to break below the 100-hour MA (red line) on two separate occasions since overnight trading but there was no firm follow through and price has now rebounded higher. Stay above the 100-hour MA and near-term bias remains more bullish. Of note, the 100-hour MA has now crossed over and is now higher than the 100-day MA in trading today.
So, as long as near-term bias remains more favourable for buyers then that ultimately will mean that price will stay above the 100-day MA as well – resulting in a break of the downside momentum seen since April. That creates less “work” for buyers to do in general but still, getting and staying above 1.1700 is much needed for the time being. Do that, and there is a threat of a real break back towards the upside for EUR/USD.