EUR/USD gained 0.22% and pushed toward its weekly high after buyers defended support in the 1.1498-1.1506 zone. The pair now approaches the 100-day moving average at 1.15686, a level it hasn't cleared since May 14, and the 50% retracement at 1.1586.
EUR/USD gained 0.22% to trade near 1.1557, just shy of Monday's high at 1.1558. Buyers defended the 1.1498-1.1506 support zone during yesterday's pullback, and the pair held above its rising 100-hour moving average before closing higher.
EUR/USD nears the 100-day moving average
A break above Monday's high would mark a small win for buyers, but the technical path gets harder from there. The 100-day moving average sits at 1.15686, a level the pair hasn't traded above since May 14. Just beyond it lies the 50% retracement at 1.1586, which lines up with the upper edge of a swing area dating back to May.
Retracements rarely move in a straight line, and this one is no exception. Progress often comes in small steps, with each resistance level forcing buyers to prove themselves before the next target comes into view. The cluster ahead gives sellers several well-defined levels to lean against while keeping their risk relatively contained.
Sellers eye a defined risk zone above
For sellers looking to fade the rally, the area between the 100-day moving average and the 50% retracement offers an attractive risk-versus-reward setup. Stops can sit above that resistance zone, while the initial downside target would be a move back toward the 100-hour moving average at 1.1523. A break below that support would strengthen the bearish case and could invite additional selling pressure.
The bias stays tilted higher for now, but buyers are closing in on a formidable band of resistance. Clearing it would brighten the outlook further out; failing to, and sellers have a well-defined area from which to make their stand.
Source: InvestingLive
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