EUR/USD rises to session highs as the dollar slips
And the pair is now threatening a break above 1.1700 but more importantly, a break of the 100-day MA (red line). The last time the pair posted a daily close above the 100-day MA was back in April when the downtrend (or uptrend in the dollar) started.
This potentially marks a significant turning point in the pair and will reinvigorate more buyers to start coming back into the picture.
There is slight daily resistance from the region between 1.1730 to 1.1750 so that will be the next region to look out for. But a break above the 100-day MA is definitely a good start for buyers and this would not only mark the start of a turning point in EUR/USD but also the dollar in general.
The greenback remains offered at the start of the European session here following weaker CPI figures overnight but further technical breaks like this will only help lend more belief that this could be the end of the dollar's upside momentum that we have seen since mid-April.
Although not much has changed yet fundamentally apart from a weaker CPI report and Draghi's slightly more upbeat rhetoric, technical levels must be respected too. And with the dollar's positioning looking relatively stretched against the rest of the major bloc, this could be the beginning of some significant form of retracement in the dollar's upside this year.
Support
- 1.1675 (swing region)
- 1.1640-50 (swing region)
- 1.1608-16 (100-hour MA, 200-hour MA)
- 1.1600 (bids, swing region)
Resistance
- 1.1730-50 (swing region)
- 1.1791 (July high)
- 1.1800-12 (offers, swing region)
- 1.1851 (June high)
