EUR/USD price action rests in between the key hourly moving averages
The dollar was trading weaker yesterday and EUR/USD buyers tried to take advantage of that to push above the 200-hour MA (blue line).
However, added resistance from the 50.0 retracement level @ 1.0859 helped to limit topside momentum and price fell back to levels in between the key hourly moving averages.
And that is roughly the same region where we are trading now as buyers are keeping price above the 100-hour MA (red line) now @ 1.0814. Meanwhile, sellers are keeping price below the 200-hour MA (blue line) now @ 1.0837.
As such, those are the key levels to watch as we look towards European trading today.
To the topside, there is also still resistance from the 50.0 retracement level @ 1.0859 before further resistance is seen around 1.0880-00 next.
Meanwhile, the 1.0800 handle will once again be a key spot for sellers to try and break below before looking towards testing daily support @ 1.0769-74 once again.
From a fundamental perspective, I’d argue that the market is still largely trying to figure out a lot of things right now. Price action clearly reflects that as we are back at levels seen during trading last week – more or less.
Stocks fared better yesterday but are looking more tepid today and Treasuries are not helping, basically tiptoeing since trading last week.
The Fed will be a key risk event to watch amid virus headlines but also keep an eye on earnings releases this week. For the latter, watch out for company guidance as that will be among the key factors to drive outlook in the months ahead.