EUR/USD clings onto support and bids from the 1.1540-50 region
Near-term support around the 1.1540-50 level along with bids around the region is helping to give buyers an area to lean on for the time being. The pair has moved lower after nearing the 3 August highs of 1.1628 in overnight trading and subsequently fell below the 1.1600 level thereafter.
The thing that makes me rather unconvinced of any further upside is how buyers have shown little conviction to push the issue when price trades above 1.1600. It just doesn't look like the holding price above the figure level is sustainable at the moment. And that is one sign of exhaustion.
However, continued defense around the 1.1550 will lend more confidence in the near-term but if there is no firm hold above 1.1600 in the near-term then it will be tough to see the pair aim for much higher levels beyond that.
That said, sellers still have plenty of work to do themselves. The key level that they need to take out is the 100-hour MA (red line) and that sits near a cluster of support and bids with the 61.8 retracement level @ 1.1503 and the 1.1500 handle close by.
If you're trading short-term levels, I'd say price is very much caught in the middle and risk levels can be clearly defined and limited for both sides of the trade. Move back above 1.1600 and it builds a more bullish bias in the pair to test the week's highs and the 1.1628 level. Move below 1.1500 and the near-term bullish bias breaks and sellers will start to feel more confident to break lower.
