EUR/USD fails to close below daily resistance of 1.1187 yesterday
And with the dollar holding a little weaker on the day, it is precipitating a move back above the 1.1200 handle in EUR/USD. At the moment, price is flirting with the 100-hour moving average @ 1.1221. If buyers manage to firmly move above that, then the near-term bearish bias will be broken as further resistance is then seen around 1.1250 before the 200-hour moving average comes into play at 1.1259.
There will be a host of PMI figures to come in the next hour in European morning trade but I don't expect the releases to have much bearings on the euro today. Trading will center more around the ebb and flow and for now, dollar weakness on the back of improved risk sentiment is a key driver that's moving the pair higher.
That and the fact that sellers are unable to break below the 61.8 retracement level @ 1.1187 on a daily close is once again proving to stop the downside move in EUR/USD for the time being. We could see some minor retracement of the downside move over the past two-and-a-half weeks but I am still of the view that it is hard to imagine the euro soaring given current economic and political conditions.
All that being said, it's still not the bears' time to shine just yet in EUR/USD. The break of the 1.1187 level is key for that to happen.
