The dollar’s recent advance has run out of steam a bit over the week, remaining slightly down today as well. This means that EUR/USD rises another 0.2% to 1.0689 as it maintains a modest rebound from the 1.0600 mark earlier this week. So, is this rebound significant? Let’s see what the short-term chart has to say.
EUR/USD Hourly Chart
For the moment, it’s not much but the most important thing is that buyers have managed to regain some control.
The return above the 100 hour moving average (red line) is the most notable development. And this causes the pair’s short-term bias to now become more neutral. The next key resistance point will be the 200 hour moving average (blue line) at 1.0725.
Stay below and the sellers are still there with a shout. But cross the line and buyers will start to be incentivized to turn things around against the dollar in general.
As such, we are now caught in a ping-pong range between the two key near-term levels highlighted. Unfortunately, there won’t be much in the way of economic data to help settle the scores. So let’s see what the ECB and Fed speeches have to offer before the weekend.
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