The euro is sitting higher on the day, with EUR/USD seen up 0.3% to clip the 1.1200 mark. Even EUR/CHF is also driven higher, up 0.6%T to 0.9445 currently. But circling back to EUR/USD, the pair is once again testing key daily resistance at the figure level as buyers are hoping for a breakthrough this time.
Traders might be looking for an ECB rate cut next month but that isn’t stopping the upside momentum in the pair, since bouncing off the 1.1000 level earlier this month.
For now, the 1.1200 level is still offering key resistance for the pair. That before the July 2023 high at 1.1275 potentially comes into play next.
The tricky part about reading into price action today is that it is comin amid month-end and quarter-end trading. I’d be more comfortable any any technical breaks if it did not coincide with this period, which tends to include some form of shenanigans every now and then.
The dollar itself is trading more mixed on the day. It is higher against the yen and franc but lower against the euro, pound, and antipodeans. That’s not really making for much clarity in the price action today.
In other markets, US futures are still flattish while European indices are down. There isn’t much of a cheer in broader equities despite Chinese indices rallying hard once again to close the day over 8% higher. In the bond market, yields are higher across the board and that is keeping a more mixed mood so far in European morning trade.
This article was written by Justin Low at www.forexlive.com.
