The euro is finding some buyers today
EURUSD is pushing on into 1.1700 and touching a high of 1.1745, as I type. Firstly, I don’t have any tangible reasons why it’s so bullish as markets are pretty listless today. It has been supported by cross action via EURJPY and EURGBP, and a late morning slump in USD. Some in the market has put it down to the European data but that’s a straw clutch as since the ECB meeting, we’ve gone back to not moving on the data, and there’s been nothing market moving in today’s numbers. But, here we are and the market moves no matter what we think.
We’ve had a classic pattern on the 15m charts with buyers stepping up to support each push.
1.1710 showed good support when we moved through and then that stepped up to 1.1720 as that broke. It’s probably safe to assume that 1.1730 will offer similar support if the market stays in this slow and steady pace. The break there also took us above the 100 DMA. Any big news or headlines would be too strong for some or all of these levels, and that includes the US data at the bottom of the hour.
Looking further afield, 1.1760 is the 38.2 fib of the Sep drop, and likely next resistance point.
Above 60 the 55 dma helps add to the protection of the 1.18 big figure, coming in at 1.1797.
Into 1.1800, 1.1820/35 is where we may see the stronger resistance showing up, should we go there and considering we’re not really moving on any fundamental news, that could be the place that puts a lid on this part of the ranging we’re seeing. For now, the new range low is the 1.1600/1.1580 area.