- New USD sales bias helped EUR / USD continue to gain ground on Wednesday.
- Momentum propelled the pair to the upper end of a multi-week trading range around 1.1000.
- A sustained move beyond 200-DMA (region 1.1015-20) was necessary to confirm a bullish break.
The intraday USD selling pressure accelerated at the start of the North American session and brought the EUR / USD pair to almost three weeks, around the region of 1.0985. The level mentioned marks the upper end of a multi-week trading range, which is closely followed by the key psychological mark of 1.1000 and the very important 200 day SMA.
With technical indicators on the daily chart gaining ground in positive territory, a convincing breakthrough could be seen as a new trigger for bullish traders. However, the oscillators on the time charts are already blinking slightly in overbought conditions and deserve some caution before positioning themselves for any further appreciation movement.
Therefore, it will be prudent to wait for sustained resistance above the 1.1015-20 (200-DMA) barrier in order to confirm a short-term breakout and place new bullish bets. The pair could then accelerate the momentum towards the reconquest of the 1.1100 brand en route to the 1.1145-50 supply zone, with some intermediate resistance near the 1.1040 region.
On the other hand, any significant withdrawal below the 1.1055 level could now be considered a buying opportunity and help limit the decline near the 1.0910-1.0900 area.