EUR/USD highs presently capped by 38.2 retracement degree
Whereas the main target of the currencies market has been on the flash crash, EUR/USD continues to do its personal factor by ranging between the 1.13 and 1.15 deal with nonetheless. The value motion from the highs yesterday and the lows right this moment exemplifies that buying and selling vary that has persevered since mid-November.
The rebound from the lows right this moment sees value now run into resistance from the 38.2 retracement degree @ 1.1381. That’s thus far limiting additional upside within the pair. Of observe, there’s a respectable quantity of expiries at 1.1400 as nicely so be careful for that to place a cap on value motion too.
However the two key ranges within the near-term chart that patrons should break above for an opportunity at an actual extension are the important thing hourly transferring averages at 1.1413 and 1.1430. By shifting the bias again in the direction of being extra bullish, solely then will we see a possible retest of the 1.1500 deal with.
There may be nonetheless respectable arguments to be made on either side of the commerce in EUR/USD now with the Fed to take a extra dovish stance whereas US-China commerce worries seem like hitting dwelling relatively laborious (Apple newest to take a success, signaling that no US firms could also be spared from the dispute).
In the meantime, Eurozone progress is not faring any higher and additional slowdown will solely push again the ECB’s steering and trigger additional woes for the euro.
Till merchants can kind out which of the 2 is worse to cope with transferring ahead, the 1.1300 to 1.1500 vary is prone to persist nonetheless. The following massive transfer within the pair will depend on one which firmly breaks away from the buying and selling vary.