Near-term resistance levels are still holding buyers back for now
The pair got a boost in US trading yesterday as risk sentiment in markets improved due to the equities rebound. That kept the recent uptrend seen on the daily chart in tact, and that is key for buyers as they look to extend the move to the upside.
But first, they have to break through some stubborn resistance levels on the hourly chart:
Yesterday's upside move was capped by the 50.0 retracement level @ 135.74 and the 200-hour MA (blue line, now at 135.72). So far, these two levels combined are proving to be a tough level for buyers to crack as it was tested twice and failed so far.
While buyers may be able to take a win when price tested the lows yesterday, the battle isn't over yet.
If global risk sentiment continues to improve, the pair should be able to sustain a move higher during the week. There's no major or overly important data points for either currency for the rest of the week, so sentiment could be the main driving force here.
