The dollar is losing some ground in early trades in Europe
EUR/USD is now knocking on the door of breaking above the 1.1200 handle as buyers exert further near-term control after a resurgence in overnight trading. Price is now contending with offers around 1.1200 as well as resistance at the 61.8 retracement level @ 1.1204.
Looking at the hourly chart, the near-term bias is now more bullish and that's a significant change in sentiment for the pair after two weeks of steady decline. For trading today though, it must be noted that there are large expiries mired between 1.1150 to 1.1200 so that could well help to keep price action limited for now.
But also do note that the expiries also extend towards 1.1245-50 so that could be the next level buyers may find tough to crack should we get there.
From the daily chart:
The overnight bounce comes after price tests the April low (daily support) @ 1.1118. A bit of double bottom pattern is formed as a result so the retracement here could be attributed to a bit of a technical rebound.
In the bigger picture, the pair is still sitting in a downwards channel and unless buyers can break that pattern, the pair remains on a sell-on-rallies mode as we move closer to the top end of the channel resistance.
