EUR/USD inches higher as dollar continues to lose further ground

Technical Analysis

Author: Justin Low | eurusd

EUR/USD holds above the 1.1300 handle in early European trading

EUR/USD H1 17-04
The dollar and yen are holding a little weaker as we begin the European morning as markets look to be leaning slightly towards a more risk-on mood. Chinese economic data earlier mainly helped markets breathe a sigh of relief, easing some fears on global growth.

In particular, bonds are showing a significant response with Australian yields rising earlier and now we're seeing the same come out of Europe as well. 10-year bund yields hit a high of 0.086% earlier, rising to four-week highs.

And that is helping to give some impetus to currency traders with EUR/USD and EUR/JPY rising to session highs of 1.1314 and 126.66 respectively.

For EUR/USD, the near-term bias is now more bullish once again as price holds above both key hourly moving averages. However, there is near-term resistance around 1.1316 before the swing region around 1.1325-30 comes into play once again.

Those will be the key levels to watch out for in the session ahead. Besides that, do take note that there are large expiries resting at 1.1300 so that could play a part in keeping price action anchored around the figure level as well.

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