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EURUSD Demand Continues to Hold

jeffriess
March 23, 2020
by Joseph Jeffriess, Market Analyst

After another failed attempt to move lower, EURUSD buyers continue to defend 1.0640

For now, we’re seeing buyers continue to defend from 1.0640. This level had moved below again this morning, as risk currencies started the week on the back foot. The EURUSD fell to a new monthly low of 1.0635 in early Asian session trade. This move seemed to be a pulse lower as stocks were also hot on the sell. Buyers turned the tide fighting back and moving the session now back into the positive. Since the low, we’ve seen a 1.26% rally to today’s high (so far).

Currently, we’re watching the 1.0689 level as it’s developing into support. Resistance is seen above at 1.0780, we would like to see buyers break this point to show commitment in extending a counter-rally. If we do see an extension, we’ll be looking to 1.0997 as a potential resistance point.

On the sell-side of the ledger, look out for further resistance from 1.0780. Any new failed rallies below this point, as well as a new test of support, points to the fact that the number of buyers could be dropping and sellers could be looking for a new attempt at an extension lower.

There’s no key USD or EUR data coming out in tonight’s European or New York sessions.

Good trading from Eightcap.
All times are AEDT.