EUR/USD rises to a session high of 1.1499
Of note in trading this session the euro and pound are holding up well paring some of the losses sustained in overnight trading as a result of a stronger dollar on the back of higher yields and better economic data. EUR/USD now closes in on the 1.1500 handle while GBP/USD has risen to a high of 1.2978 on the day as well.
There doesn’t seem to be much else apart from rising yields across the Eurozone helping to underpin the single currency as well but the giving back of gains once again looks to be another opportunity for sellers to come back in again as long as price continues to hold below the key hourly moving averages.
Right now, the 1.1500 handle will be the first key test to the upside but any failure to sustain a break towards a move to test the 100-hour MA (red line) @ 1.1561 will be met by further selling in the session ahead surely.
As long as price holds below the 100-hour MA, then near-term price bias still remains more bearish. Unless there is a strong catalyst for a push towards the 100-hour MA, it’s tough to see the narrative change for the euro as long as Italy’s budget worries continue to be a long drawn issue for this month.