EUR/USD approaches test of key resistance levels
The euro has been a solid performer over the past two days and the single currency is still holding firm as we begin the session, with EUR/USD sitting close to 1.1260. Buyers are in near-term control but they have work to do in order to extend the momentum to the upside further in the coming sessions.
Of note, price is looking to threaten a break above the resistance trendline, now at 1.1246, which has held on two separate occasions since the start of the year. Just above that, the 100-day MA (red line) rests at 1.1278 and that will be a key level to watch out for in the day ahead. A daily close above that will see the bearish bias broken and buyers will have more conviction to build on a move higher.
There is minor resistance from the swing highs in May @ 1.1265 but the two levels highlighted above are the ones to watch in my view.
My previous conviction was to maintain rally-selling in the pair but with the dollar looking shaky and out of place (currency traders still undecided about Fed rate cuts and dollar's allure as a safe haven), there is good reason to wait and see how price action plays out around the key levels above in my view.