Cable trades near the highs for the day, benefiting from a jump in the euro
The latest move in the last hour saw cable jump back to a high of 1.3279 on the day and it trades near there heading into US trading. The pair is now holding above the 200-hour MA (blue line) and looks to break above the 50.0 retracement level @ 1.3274 as well.
If buyers are able to maintain a break here heading into the hourly close, it will bode well for an extension towards the upside to test the 1.3300 level.
Stay above the 200-hour MA and the near-term bias remains bullish. The lows today tested the 38.2 retracement level @ 1.3234 but sellers were unable to move the pair lower as three separate hourly tests failed to close below the support level.
Update: The pair now touches a high of 1.3285 on the day and the hourly candle closes above the 1.3274 level. That is a good start for buyers as the US session gets going. The 1.3300 handle will be eyed next, with the 200-hour MA now acting as a support level - with further support seen @ 1.3234 of course.
We'll have the Chicago Fed activity index due at the bottom of the hour, so that'll be the next event risk for the pair. But for now, buyers have appeared to reclaim control in the near-term.