The EUR/USD currency pair is presently sitting in around the 1.1750 handle. Currently it is having a hard time getting above the horizontal 20 Simple Moving Average (SMA). The duo is recovering after two days of back to back losses. This rebound comes at an important time, as global demand for the US Dollar (USD) continues to tumble. The market sentiments are largely neutral, with the pair struggling to find any bullish momentum, held back by the key daily resistance.
EUR/USD, for the time being, is stuck in neutral territory. Now the market is at a very clear point of indecisiveness. It makes another run up to intraday highs, but it simply doesn’t have the energy to power through. Speculators are watching this level like hawks, because if the dollar can break above the 1.1750 barrier, the technical picture will point to a change in market direction.
We’ve outlined three important support levels for EUR/USD to watch 1.1690 1.1650 1.1615 The 200 SMA even provides intraday support mere ticks from 1.1690. These levels are extremely important to dollar/yen traders who want to get a sense of where price might head next. Resistance levels are currently at 1.1750, 1.1795, and 1.1830. These are the inflection points that show where purchasing interest will begin to taper off.
Even with the never-ending wave of bad news, EUR/USD still sporting a neutral-to-bullish posture in the short term. Their position above the 100 and 200 Simple Moving Averages (SMAs) indicates underlying strength. It meets a strong selling pressure near the 100 SMA, making it difficult for any further advances. Lastly, the 20 SMA is still going decisively down, suggesting strong downward pressure if the pair doesn’t pick up momentum.
So the continued recovery of the EUR/USD can be explained by the reduced need for the US Dollar. As market participants reassess their positions, the dynamics surrounding the USD have shifted, providing a conducive environment for the euro to regain some ground. The pair has displayed remarkable grit. There’s a limit, and no clear expectation that they’ll keep growing.