EUR/USD continues to hug the 1.1300 handle
Sellers remain in near-term control but are unable to sustain a break under the 1.1300 handle as traders continue to push and pull in search of further direction this week. Risk sentiment remains the key driver following Friday’s meltdown but is struggling to make up its mind so far this week.
European equities are trading mixed but Treasury yields are holding up well following a slip up in overnight trading. I reckon the onus will be upon US traders to decide once again which side of the coin that the trading bias and risk sentiment will lean towards.
For EUR/USD, there is some decent expiries rolling off at 1.1300-05 today (€863m) so that may play a part in keeping price action contained with little else for traders to focus on.
As for technical levels, near-term resistance sits around 1.1330 before we have the 100 and 200-hour moving averages at play around 1.1344 and 1.1338 respectively. There’s also the 100-day moving average at 1.1364 to look out for.
On the other hand, downside support is seen at 1.1300 as well as minor resistance around 1.1280-90 so just be wary of these levels in the meantime.