EUR/USD climbs to a session high of 1.0851
The pair is inching higher on the day as the dollar falters amid slightly better risk tones in the European morning, notably making its way back above the 200-hour MA (blue line).
That sees buyers looking to establish a more bullish near-term bias after having defended selling pressure around the 100-hour MA (red line) since overnight trading.
That said, the coast isn’t clear yet for a surge in upside momentum in the pair.
There is still resistance from the 50.0 retracement level @ 1.0859 and that will act as a key near-term level that buyers must try and break through.
Beyond that, there is also further resistance around 1.0880-00 next.
From a technical perspective, the near-term break above the key hourly moving averages is encouraging but I’d still be a bit skeptical with USD/JPY holding out at 107.00.
The move here is more to do with dollar weakness amid the cautious optimism in the market but so far this relief rally isn’t majorly overwhelming to start the week.
The positive risk tones are encouraging but they are still rather minor and when you look at oil prices, there are still cause for concern as it is down by about 20% to $10.20.
For now, buyers are looking to build on something but there is still work to do for a more meaningful upside push beyond the resistance levels highlighted above.