EUR/USD starts to form a more solid base for now, can buyers capitalise?

Technical Analysis

Author: Justin Low | eurusd

EUR/USD is looking to keep above its 100-hour moving average

EUR/USD H1 24-03
The pair has been consolidating losses around 1.0650 to 1.0800 over the past few sessions before we see a rise of more than 1% today back above the 1.0800 level.

More importantly, the pair has climbed back above its 100-hour MA (red line) and buyers even defended the level in a slight pullback earlier before pushing towards a high of 1.0866 and then backing off once again towards current levels.

The dollar remains weak across the board as investors digest the post-Fed reaction but from a technical perspective, the break of the 100-hour MA is a key near-term change in the EUR/USD picture as the bias in the pair now turns more neutral.

The key for buyers today is to keep a daily break above 1.0778 and preferably above 1.0800 to build a solid platform to attempt for a move higher. The 23.6 retracement level @ 1.0839 is also one of the first key resistance levels at this stage.

For now, buyers look like they are starting to capitalise on the pair finding a bottom but any real upside extension is no guarantee just yet. If anything, I'd wait until we get confirmation from North American traders before counting out the dollar today.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose