Price is trading above the 100-hour MA now
The pair is trading near session highs at the moment as buyers look to break away from the 100-hour MA (red line) @ 1.1382. The bottom was found as overnight low close in on the 1.1300 handle but bids around the figure level helped to propel the pair higher as the dollar weakened.
That same dollar weakness is continuing into the new day as the gloomy risk sentiment from yesterday is fading a little. Of note, the commodities complex is trading higher against the greenback as well with metals recovering well.
In the currencies space, that has seen the dollar and yen fall to the bottom of the pile and the euro is among the major beneficiaries from that - alongside the aussie and kiwi.
Hold above the 100-hour MA in EUR/USD and that means that the near-term bearish bias is broken. The next resistance levels to look out for in the pair is at the 1.1400 figure level where offers lie followed by the 38.2 retracement level @ 1.1426 with the week's highs at 1.1433 lurking nearby. Further resistance is then seen at the 50.0 retracement level @ 1.1465 followed by the 200-hour MA (blue line) @ 1.1480 and then the 1.1500 level.
As mentioned yesterday, nothing ever moves in a straight line and some retracement in the dollar had indeed looked to be overdue. But as long as the overall picture remains intact, I'd still prefer selling on rallies but will be looking for further signs from the dollar index to determine those entries.
