Near-term bias remains more bearish but price is sitting in a narrow range today
There isn’t much going on in markets so far as European trading gets underway. US markets are closed later and with little direction to feed off of, markets are looking rather rangy. The dollar is mildly bid since Asian trading but it’s not really setting the world on fire after recouping losses in overnight trading.
EUR/USD touched highs near 1.1420 yesterday but once again failed to clear the resistance region around 1.1410-20. More hawkish comments from Fed’s Williams helped to keep a bid in the dollar later in the day and saw EUR/USD fall back below the two key hourly moving averages.
That means near-term bias now is more bearish but sellers are finding it tough to break below the swing region around 1.1320 so far today. Price sits in a 29 pips range thus far so that’s not really suggestive of great price action at the moment. For a downside break, the key would be the 1.1300 handle and then price will extend towards last week’s lows near the 76.4 retracement level @ 1.1276.
As for upside levels, buyers will first have to find a way back above the key hourly moving averages with the 200-hour MA (blue line) to come first @ 1.1345 followed by the 100-hour MA (red line) @ 1.1359. But once again, unless price can hold above the 1.1410-20 resistance region, the upside will remain contained and fundamentally there isn’t much reason for a break higher to occur either at the moment.
As price plays ping pong around current levels, expect price action and opportunities for the pair to remain rather limited on the day; more so with US markets closed leaving liquidity on the thinner side.