EUR/USD starts to form a more solid base for now, can buyers capitalise?

Technical Analysis

EUR/USD is looking to keep above its 100-hour moving average


The pair has been consolidating losses around 1.0650 to 1.0800 over the past few sessions before we see a rise of more than 1% today back above the 1.0800 level.

More importantly, the pair has climbed back above its 100-hour MA (red line) and buyers even defended the level in a slight pullback earlier before pushing towards a high of 1.0866 and then backing off once again towards current levels.

The dollar remains weak across the board as investors digest the post-Fed reaction but from a technical perspective, the break of the 100-hour MA is a key near-term change in the EUR/USD picture as the bias in the pair now turns more neutral.

The key for buyers today is to keep a daily break above 1.0778 and preferably above 1.0800 to build a solid platform to attempt for a move higher. The 23.6 retracement level @ 1.0839 is also one of the first key resistance levels at this stage.

For now, buyers look like they are starting to capitalise on the pair finding a bottom but any real upside extension is no guarantee just yet. If anything, I’d wait until we get confirmation from North American traders before counting out the dollar today.

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