Forex Update: EURUSD bucking USD demand but will we see resistance retested?
Looking at the action on the majors to the USD in today’s London session, you might notice that the EUR is currently running its own race as the other two majors track lower. It’s an interesting picture at the moment as the AUD and GBP trade lower to a firm USD, while the EURUSD has broken yesterday’s high after pulling back 0.27%.
Price overall remains in a choppy range. Yesterday’s bar showed buyer demand as it stopped a third straight day of selling. There’s plenty of demand from 1.0675 down to 1.0650. But it’s the choppiness that’s a worry. If today’s bar can hold higher above yesterday’s close, that could kick start a new move that could retest 1.0750 demand. We want to see a move above 1.0780 to show that the current up leg is setting up as a new trend. While price remains in the consolidation, we do wonder if the weight may also easily lead to new test lower by sellers.
Thursday could play a part in the short term fortunes of the EURUSD as the ECM meets. Rates are expected to remain on hold, but it’s the statement from the ECB and their future stance that might have an impact.
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