EUR/USD has been making a series of lower highs, lower lows this week
The pair briefly took a run under the 1.1200 level in overnight trading, but buyers managed to drag price back higher to settle above that with price action now looking rather subdued around 1.1200-20 for the most part.
Of note, the pair has been making a series of lower highs and lower lows this week with sellers still maintaining a more near-term bearish bias as well.
One of the considerations that is keeping the pair higher is also a break to the upside in EUR/GBP where the pair managed to close above 0.9000 for the first time since March.
As for the dollar side of the equation, things are looking more quiet/mixed for now as we mainly await US trading to see what quadruple witching day has in store for markets.
But if anything else, the technical levels will continue to give a sense of what the market is looking to do. For now, the pressure continues to build on a run to the downside for EUR/USD with the battleground sitting around the 1.1200 level.
The risk for sellers can be seen closer to the 100-hour MA (red line) @ 1.1258 with further resistance then seen from the 200-hour MA (blue line) @ 1.1290.
Adam also pointed out a head-and-shoulders pattern yesterday that makes the downside case a little more compelling but much like everything else in the market as of late, a lot will come down to how risk trades react as that will affect the dollar significantly.
