The EURUSD gapped higher at the Asia-Pacific open and initially extended gains before rotating lower to a session low of 1.15937. Buyers stepped back in from that level, helping lift the pair to a high near 1.1622. Since then, price action has settled into a relatively narrow range, with the pair oscillating between those extremes as traders await the next catalyst.
From a technical perspective, the first key upside target comes at 1.16287, the 50% retracement of the decline from the March 13 high. A sustained move above that level would increase the bullish bias and open the door toward the June 4 and June 5 highs near 1.1644, followed by a more significant resistance zone between 1.1655 and 1.1667. Beyond that, the 200-day and 100-day moving averages, currently at 1.1675 and 1.1684 respectively, represent major hurdles. A break and hold above those moving averages would shift the broader technical picture more firmly in favor of the buyers.
On the downside, support begins at today’s low of 1.15937. A move below that level, and especially below the swing area between 1.1576 and 1.1587, would weaken the bullish case and have traders looking back toward the 100- and 200-hour moving averages, which currently converge between 1.1563 and 1.1569.
For now, buyers retain a modest near-term advantage after the early-session rally, but they need to push above the midpoint retracement level to strengthen their grip on the market.
The ECB met last weekend raised rates by 25 basis points. The US Federal Reserve will announce their interest rate decision on Wednesday. No change us expected.
This article was written by Greg Michalowski at investinglive.com.
