EUR/USD tests the high yesterday as dollar keeps weaker to start the session

Technical Analysis

Author: Justin Low | eurusd

EUR/USD trades to a session high of 1.1276

EUR/USD H1 02-07
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The turnaround in the risk mood spurred a reversal in EUR/USD yesterday, having fallen to a low of 1.1185 where near-term support around 1.1191 held before bounding to a high of 1.1275 and then retreating a little.

As we get the session going, the dollar is on the back foot as risk sentiment is tilting slightly more positive with US futures now posting gains of around 0.3% to 0.4% from flat levels earlier. In turn, this is pushing EUR/USD to session highs of 1.1276.

The overnight high at 1.1275 will offer some near-term resistance but levels around 1.1290-00 remain the key line in the sand limiting any real upside potential in the pair.

So far this week, price action remains more choppy bouncing on either side of the key hourly moving averages with downside limited around 1.1190-00 and upside limited by resistance closer towards 1.1290 as seen on Monday.

Buyers may be keeping near-term control for now but a lot will come down to how the market reacts to the US jobs report and coronavirus figures later to see if there is any real conviction to break out on either side of the extremes noted above.

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