EUR/USD little changed on the day but buyers stay on the hunt towards 1.2000

Technical Analysis

Author: Justin Low | eurusd

EUR/USD broke away from its three-week range between 1.1700 and 1.1900 in trading yesterday

EUR/USD H1 19-08
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The pair managed to keep a firm daily break above 1.1900 in trading yesterday, as buyers push away from the trading range between 1.1700 and 1.1900 since the end of July.

That is seeing the bias tilted slightly in favour to the upside, with further resistance seen at the psychological level at 1.2000.

The momentum in the new day is rather tepid so far with the pair keeping in a more narrow range. The market is looking more mixed in general and it looks like we will only get a better sense of momentum flows later in North American trading again.

That said, keep above 1.1900 and buyers will still hold a slight edge on the day so that is the key risk level to watch for any further upside extension.

In the bigger picture:

EUR/USD W1 19-08
There also isn't much stopping the pair from a push towards 1.2000 with buyers staying more poised on a firm break above the 61.8 retracement level @ 1.1822 from the swing move lower since February last year.

As we look towards 1.2000 - a level that many analysts and houses are pointing out - just be mindful that the ECB may also start to come into the picture as they could feel that a higher euro could be a hindrance to stronger inflation pressures.

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