EUR/USD continues its quiet and gradual ascend towards the month-end

Technical Analysis

Author: Justin Low | eurusd

EUR/USD is trading at two-week highs above the 1.0900 level

EUR/USD H1 27-02
ForexLive
The pair is continuing with a series of higher lows, higher highs this week as the euro keeps firmer against the dollar despite some choppy trading over the last few days.

Buyers are also able to sustain a more bullish near-term bias as price keeps above both key hourly moving averages, and that has helped to see the pair rise above 1.0900.

I'm still a bit torn about how much of the recent move relates to month-end flows with EUR/GBP sitting at fresh three-week highs, helping to give the single currency a bit of a boost over the last few sessions as well.

For today, there are also large expiries around 1.0915-25 that may be playing a role in attracting price action to stick close to current levels that we're seeing.

In any case, I reckon we will get more clarity one way or another over the next few days.

Once we can rule out month-end flows, we will see how price action develops relative to the technical levels that are in play.

Also, there is the risk of coronavirus developments turning worse for either Europe or the US and that may impact the two currencies in question - depending on which is viewed to be worse, though for now I'm leaning more on the latter; all else being equal.

Anyway, there is still key resistance closer towards 1.0990-00 and then from the key daily moving averages at 1.1055 and 1.1099 and I would argue those to be more attractive points to be selling rallies in the pair in the event of a short squeeze higher.

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