Price action continues to stick close to the 1.1200 handle
However, the key difference today is that price has started to take a peek below the 100-hour MA (red line). That means that buyers are no longer in near-term control of the pair.
Of note, price moved below the key near-term level to test minor support @ 1.1179 before hugging the 100-hour MA again in trading today.
That said, the more important levels are still at play for the time being. For buyers, it is the same as it has been all week in that they have to hold firmly above 1.1200 and try to break above the 100-day moving average (today @ 1.1226).
Meanwhile, for sellers, they are taking the first steps to establish some momentum to the downside. However, price needs to move below the minor support levels noted above and test the 200-hour MA (blue line) @ 1.1153 for further confirmation.
A break below that will see sellers gain back near-term control and we could see price start heading back towards a test of the 1.1100 handle.
As it stands, Italian political risks could be a factor affecting price action in the coming sessions so just be wary of that. We’ve already seen Italian bonds slump at the start of the day so that may limit any potential gains in the euro as we look to wrap up the week.