Buyers defend attempts to break below the 100-hour moving average
But despite that, we’re not seeing price action run away to the upside just yet. The dollar is the weakest performing major currency so far today but the moves have been very mild. It feels like a typical summer day in European trading now, so unless there is any further extension then we may very well hug these levels as we close out the week.
The key resistance level to break above for any extension is the overnight high @ 0.7287. That will see a retest of the 0.7300 handle where offers lie – as well as the 38.2 retracement level @ 0.7298.
In the bigger picture, the pair looks to have held off declines as it approached the 0.7200 level (barrier options still in place) and with the dollar index a little sluggish after failing to breach 97.00 we could be in for some further retracement for the time being.