EUR/USD touches a high of 1.1401 on the day
It’s a good sign for buyers as they managed to hold off further declines on the day as risk tones continue to improve across markets. Yen pairs in general are being bid and that’s resulting in a move higher among the major currencies against the dollar as well.
For EUR/USD, the move higher is significant in the sense that price is now moving back above the 100-hour MA (red line) and that would mean that near-term bias will shift towards being more bullish again.
The 1.1400 will present a tough resistance level to break above with offers and large expiries also sitting there, but you can’t rule out a move that’s driven by change in risk sentiment. There’s some resistance to come around 1.1420 as well before the 1.1450-70 levels will be tested.
Unless risk rebounds much more solidly, I would expect gains to be kept at a minimum in the session ahead. And do be reminded that there’s still a risk of Italy’s budget situation spoiling the mood too.