The EURUSD moved sharply lower at the end of last week, with the selling continuing at the start of the new trading week in the Asian-Pacific session. The low stalled near 1.15733, where the 100-day moving average and the 38.2% retracement of the move up from the end-of-July low converged. Buyers leaned against that key support cluster and pushed the price higher.
The rebound has now taken the pair into a swing area between 1.1613 and 1.16215. A move above that area would have buyers looking toward another important cluster of resistance:
- 200-day moving average at 1.16305*
- 100-hour moving average at 1.16359
- 200-hour moving average at 1.16558
Technically, the sellers from Friday still have the opportunity to maintain control. To do so, they need to keep the price below the 200-day moving average at 1.16305. A move above that level would be a disappointment for the sellers and shift the short-term bias more in the buyers’ favor, and have traders more confident at taking out the other upside levels.
Fundamentally, Treasury Secretary Scott Bessent helped the rebound by saying the Fed typically does not raise interest rates in response to inflation caused by supply shocks. With higher oil prices representing a supply shock, his comments took some of the edge off expectations for tighter Fed policy.
This article was written by Greg Michalowski at investinglive.com.