Can EUR/USD buyers manage a break higher this time around?

Technical Analysis

Author: Justin Low | eurusd

EUR/USD got a jolt higher in Asian trading earlier

EUR/USD H1 12-04
ForexLive
There wasn't much headlines as a catalyst for the move here but EUR/USD got a small pop from around 1.1260 to 1.1290 earlier and has since been lurking just under the 1.1300 handle, where it trades currently.

Of note, buyers have previously encountered near-term resistance from the 38.2 retracement level @ 1.1283 as well as the swing region between 1.1280-90 throughout the week. Right now, offers at the 1.1300 handle will be the key area that will stop any upside break.

The ECB meeting this week did manage to give the pair a nudge lower but buyers held on at the trendline support as well as the 200-hour MA (green line) and they continue to stay in near-term control for the time being.

Fundamentally, I would argue there's little reason to see the euro sustain a rally but perhaps something to consider is positioning data. As Greg pointed out overnight, EUR shorts are starting to get a bit stretched and that could lead to a bit of a squeeze or two in the short-term so be mindful of that as we look to wrap up the week.

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