At some point last week, the pair looked poised for an upside break with the high touching 1.0888. All that before the dollar rebounded and we saw a daily close back under its 200-day moving average. Today, that key level (blue line) is once again looking to be breached:
Since pushing back above 1.0800, the pair has been sort of stuck in the mud. The confluence of the 100-day (red line) and 200-day moving averages has played a role in keeping price action more sticky. That is seen around 1.0814-27 at the moment. As such, if buyers can shake that off, it will be a good building block for a further upside push next.
Adding to that is the fact that buyers are also doing the work with regards to the near-term chart. The slight retreat in Asia today was arrested at the 100-hour moving average, now seen at 1.0819. Keep above that and the near-term bias will remain more bullish for now.
But looking outside the technicals, there is little else to provide much impetus for the pair as we get things going in the new week.
