EUR/USD rises back up to the 1.1400 handle as risk recovers slightly
The market is still heavily focused on developments in Turkey but there is signs of fading contagion fears in other spaces. European equity futures are down but not as heavy as their Asian counterparts and we're seeing the rand continue to recover from earlier losses as well.
That's helping to aid sentiment a little but it's going to take more to change the overarching theme that is engulfing the market right now.
As for EUR/USD, the pair is now back up to test the 1.1400 handle once again and today's trading has yet to see an hourly close above the figure level. An attempt earlier in the day to close the opening gap failed to see a hourly close above 1.1400 as sellers remain prevalent.
In the near-term, there is additional resistance to come from the 23.6 retracement level of the swing low @ 1.1427 followed by offers around 1.1450 and the 38.2 retracement level @ 1.1466.
That said, the bias in the pair is still in favour of sellers right now.
Looking at the bigger picture, there is some support for the pair in the form of the 13 July low @ 1.1371 followed by the 5 July low @ 1.1313. And as long as price continues to stay below the 1.1400 handle and more importantly hold below any retracements towards 1.1500 (and test of the two key hourly moving averages), then the momentum to the downside remains very much intact.
And until there is a break of the key levels mentioned above, the play in the pair remains selling on any retracement/rallies. As mentioned many times, when currency pairs are moving like this it's best not to try and pick a bottom. It's never wise to catch a falling knife.
