EUR/USD closes in on a test of the 200-day moving average
Near-term price bias is siding with buyers at the moment and the pair could really threaten a move higher upon a break of the 200-day MA (blue line) @ 1.1154 next.
Buyers capitalised on dollar weakness in overnight trading but this is where the real test begins in trying to see whether the run higher has legs to go. Further resistance beyond the 200-day MA is seen closer to 1.1175-79 (late Oct, early Nov highs).
Looking at the bigger picture though:
The recent move higher still leaves a lot to be desired. The pair continues to trade in a largely narrow range over the past two months with buyers finding some support on the downwards trendline (white line) just below 1.1000.
That said, it's baby steps for now. A move back above the 200-day MA will be a good platform to build on for a further run higher but just be mindful that it is not always a given - as we saw back in late June this year.
