EUR/USD: Sellers look to seize back near-term control

EUR/USD: Sellers look to seize back near-term control

EUR/USD falls below the 100-hour moving average

And touches a low of 1.1624 on the day. The breach of the 100-hour MA (red line) also coincides with a breach of the 38.2 retracement level @ 1.1640 as sellers look to make a run towards a test of the 200-hour MA (blue line) @ 1.1619.

A firm hold below the 100-hour MA will snap the near-term bullish bias and the fight for near-term control begins.

The market continues to be focused on the trade rhetoric and yesterday that seemed to favour the dollar even when US equities faded the move. And so far, we’re seeing more of the same as the session moves along.

For EUR/USD, it is now a tug of war between buyers and sellers between the 100 and 200-hour moving averages. A break on either side of that will re-establish near-term sentiment favouring the buyers (break above the 100-hour MA) or sellers (break below the 200-hour MA).

If you’re on the sidelines, that’ll be the next clue to go on for the pair. But in any case, take note of large expiries in the pair as that will play a factor too. There is a large one at 1.1625 with another one at 1.1600 so that may provide a bit of base for the downside in the near-term.

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