EUR/USD touches a low of 1.1576 on the day
With markets trading tepidly still, the euro is inching a little lower against the dollar on the day after its failure to hold above the 1.1600 handle. As mentioned yesterday, for buyers it’s all about getting above the 1.1600 handle and also above the key resistance levels above that. One of those being the 100-bar MA on the 4-hourly chart (red line) and that is what helped to stall the upside move today.
And right now price is correcting a little lower as markets continue to digest the risk tones in markets today. E-minis have trimmed their earlier gains slightly and so have European equities, but the key indicator of how trading will pan out today will be the performance of US equities. And until then, there isn’t much direction for markets to really go on without potentially getting caught wrong-footed.
As for EUR/USD, near-term price bias remains more bullish as price holds above the two key hourly moving averages. But the failure to hold a break of the 1.1600 level isn’t encouraging for a further upside move at this point in time. It’s now over to US traders to drive the next directional move.
Support— 1.1550 (swing region)- 1.1522-23 (100 and 200-hour MA)- 1.1500 (bids, swing region)
Resistance— 1.1600 (offers)- 1.1611-22 (100 and 200-bar MA on H4)- 1.1628 (100-day MA)- 1.1650 (swing region)