EUR/USD is keeping a little higher on the day so far
The slight dollar weakness on the day is keeping the pair higher but upside momentum remains limited as buyers are unable to work their way past minor resistance around 1.0950 and the 50.0 retracement level @ 1.0966.
The near-term bias is still more bullish as price action holds above the key hourly moving averages, following a test of the 100-hour MA (red line) in overnight trading.
As things stand, the pair is largely reliant on the dollar side of the equation to start the week.
Dollar sentiment has been weak as of late with the Fed throwing everything in their policy locker to stem the economic bleeding, but also as coronavirus developments are hinting at better days to come recently.
The likes of Italy and Spain have already started taking small steps to reopen their economies despite strict lockdown measures still in place, while the US is also starting to look towards that in the coming weeks (still in the planning stages though).
However, up ahead today, we will see earnings season in the US kick off and that will present an interesting challenge for investors over the next few weeks.
We all know that it will be bad and guidance will be an issue, so let's see how the market will digest the latest updates from major corporations during this period.
For EUR/USD, any move back towards 1.1000 requires a break of the key resistance levels above. Meanwhile, the risk to such a move will be if price starts to fall back below the key hourly moving averages at 1.0913 and 1.0877 respectively.
