Buyers have built on the near-term bias from last week's move
The pair is now trading to session highs close to the 0.6670 level where large offers are touted. But given the momentum that we're seeing so far (dollar weakness across the board) it may not hold up for too long I reckon.
As buyers broke away from the 200-hour MA (blue line) on Friday and continued to trade above it yesterday, it reaffirms the near-term bullish momentum in the pair and now we're seeing an extension higher.
And as that momentum continues, the pair is also looking to break away from daily resistance at 0.6662 currently:
The next key level to eye for buyers will be the July lows close to 0.6690 and the 0.6700 handle. That will be a key resistance region to break above in the near-term.
Just like most major pairs right now, the real momentum at play is that of dollar weakness and we're seeing more of that before the start of European trading. The rally higher here may just have more legs to run.
