EUR / USD trades higher during the session but buyers still need to do more
The pair posted solid gains yesterday, only to be canceled after again failing to cross the 100-day MA (red line). That remains the key line in the sand for the pair for any major uptrend at the moment, as it also held a previous move on May 1.
The 100-day MA remains at 1.0969 today and will be a key level to watch in future sessions.
For the moment, there are still some signs of a slight softening of the dollar to start the day, but the feeling of risk is a little more mixed. While American futures continue to rise, optimism is not exactly shared by European stocks for the most part.
Admittedly, European equities missed the end of the autumn of their American counterparts yesterday and there are also complications around the EU stimulus fund proposal because the “frugals” are developing their own plan.
On this last point, it could also prove to be a bit contrary to the euro, as the differences of opinion will probably prolong any process aimed at ratifying or even approving the proposal by next year.
Anyway, let’s go back to the table now.
For buyers, the first step is to try to get back above the MA at 100 days and maintain a break above 1.1000 to test the AM at 200 days (blue line) at 1.1015. .
These will be the key levels to watch, as they will provide sellers with a good place to lean on if the mood for risk is more mixed, keeping the weak dollar at bay.
As for the sellers, it is a question of preventing a movement above these levels and trying to seek a return below 1.0900. This will be the first step before targeting the key hourly moving averages again – currently seen around 1.0847-61.