November 15, 2024 at 08:45AM
There was an inevitable pull towards the 1.0500 mark for EUR/USD in trading yesterday. And it did just that with the low touching 1.0495 as sellers tried to give it a go in breaking the key level. They look to be failing on the first try now with price bouncing back up to 1.0565 currently, as the dollar also eases in European trading today.
On the week itself, the dollar has made some large strides but things look to be cooling off in the final stretch today. And with it coming off a key level in EUR/USD, it is one that technical traders can sympathise with for sure. As mentioned yesterday here, the 1.0500 mark is a major level to be mindful of with the pair currently.
EUR/USD has been holding a range of between roughly 1.0500 to 1.1200 since the start of 2023. So, the push lower yesterday was a key test in gauging the dollar’s upside momentum post-election.
For now, that looks to be holding and in turn is keeping the dollar checked across the board as well today. USD/JPY is slipping back to 155.45, down from around 156.20 earlier in the day.
Going back to EUR/USD, the bounce today will snap five straight days of losses for the pair. However, it doesn’t do much to convince of a turnaround in sentiment just yet.
The 100-hour moving average is only seen at 1.0599 and that will be the first near-term test for both buyers and sellers. Keep below that and the near-term bias stays more bearish. Break above and buyers may stand a chance to correct back some of the post-election moves over the past week.
This article was written by Justin Low at www.forexlive.com.
