EUR/USD is testing the 200-hour moving average currently
After being dragged to a fresh one-month low towards the end of last week, the pair rebounded on the back of dollar weakness and that is continuing to be the case today.
As the greenback weakens across the board, the pair has risen back above its 100-hour MA (red line) and is now testing its 200-hour MA (blue line) @ 1.0846.
A break above the latter will see buyers seize back near-term control and establish a more bullish near-term bias. Hence, this is the key level to watch in the near-term.
Further resistance is then seen closer to 1.0880-00 thereafter.
As we kick start the week, risk is on as equities are rallying ahead of European trading and that is keeping the dollar weaker. The focus is on the reopening of some major economies, with the BOJ easing and Italy escaping a ratings downgrade also helping a little.
