Price now sits above the 100 and 200-hour moving averages

Buyers managed to seize near-term control in Asian trading after previously failing to move above the two key hourly moving averages on Friday. However, the 61.8 retracement level @ 1.1425 is currently helping to limit further gains in the pair so far on the day.

The dollar is weaker across the board as Powell's dovish comments continue to reverberate across the currencies market. That remains one of the major themes in markets as we begin the week, alongside better risk sentiment.

For EUR/USD, there are still key resistance levels at play that could cap further gains later in the session. The 76.4 retracement level near 1.1450 is the next one in-line followed by further resistance seen from the 28 December high @ 1.1473 and the 100-day moving average @ 1.1478. The latter is the key to watch ahead of the daily close today.

But in all fairness, the 1.1500 handle remains the ultimate ceiling for EUR/USD at this point in time. The trading range between 1.1300 and 1.1500 remains the battleground for buyers and sellers and only a break away from these levels will we see a material extension in EUR/USD.

As for downside risks today, watch out for poor Eurozone data that could see the pair test the 100-hour MA @ 1.1406 and the 200-hour MA @ 1.1413. Otherwise, with the dollar still holding weak, risks are favouring an upside move to test the resistance levels above with downside expected to be limited by the key hourly moving averages.