EUR/USD stays above 1.1200 but buyers need to hold a daily close above the 100-day moving average @ 1.1227
Price is now testing near-term resistance at 1.1219 once again but the overall picture remains similar to yesterday’s story as noted above.
For buyers, it’s all about keeping price above the 1.1200 handle and securing a daily close above the 100-day moving average @ 1.1227. That is the key level in limiting gains for the time being, preventing any further upside momentum.
Meanwhile, for sellers it’s about trying to find momentum to test the key hourly moving averages once again. The 100-hour MA (red line) sits @ 1.1177 and the 200-hour MA (blue line) sits @ 1.1145. Those are the key levels to eye for any downside move.
As it stands, price action sits in between those risk levels but the bright side is that we’re starting to see a narrowing wedge form. That means that given time, eventually price will break out and we can see the start of more directional trading in EUR/USD.