EUR/USD patrons look to grab near-term management because the greenback retains weaker
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The greenback is preserving decrease to start out the brand new week, regardless of the extra tepid and barely softer danger temper as we get issues entering into European morning commerce immediately.
Because the dollar provides again a few of its good points from the latter half of final week, we’re seeing EUR/USD run again as much as take a look at key near-term resistance at the moment.
Consumers managed to push again above the 200-hour MA (blue line) @ 1.1241 and at the moment are difficult the 100-hour MA (pink line) @ 1.1256.
Hold beneath the 100-hour MA and the near-term bias stays extra impartial, with value motion to be extra caught in between the 2 key hourly shifting averages.
However break above the 100-hour MA and we’ll see patrons begin to seize extra near-term management and probably look in the direction of 1.1275-80 subsequent earlier than re-approaching 1.1300.
Contemplating the present danger temper, it’s exhausting to see the pair push a lot larger so long as traders want to maintain extra cautious and defensive amid virus jitters.
The resurgence in US instances is beginning to immediate renewed virus restrictions and new outbreaks being reported within the likes of Beijing, Tokyo, and Australia solely provides to the issues available in the market over the previous two weeks.
That stated, month-end and quarter-end rebalancing flows are nonetheless one thing to contemplate – even in the event you would assume most would have been settled by final week.
For now, the general image is that the greenback is weaker and the very best we will do is to be guided by the technical ranges highlighted above.