EUR/USD maintains a narrow range but the near-term bias continues to favour sellers in the aftermath of the US non-farm payrolls
Price is holding near flat levels on the day with markets still finding its footing to start the new week. The dollar is now trading mixed against the rest of the major currencies bloc, with overall changes rather minimal to start the session.
EUR/USD is holding around 1.1220 as price contests with daily swing region resistance around 1.1216-20 currently. But more importantly, price is still holding below both key hourly moving averages and that still puts sellers in near-term control of the pair.
Further support is only seen around 1.1180-00 with bids lined up around the figure level. That will be the key downside spot to watch in the coming sessions today.
Meanwhile, to the topside there is resistance from the 100-day moving average @ 1.1259 followed by the 100-hour MA (red line) @ 1.1273 before price will revisit offers around 1.1300 with the 200-hour MA (blue line) seen @ 1.1313 next.
Those will be levels to define any upside risk for the pair ahead of more key events later this week, with markets keeping an eye on Fed chair Powell’s testimony on Wednesday.
There is little on the agenda to move things along today and with markets already having priced out a 50 bps rate cut by the Fed this month, there isn’t much else to push the issue for now. As such, just be wary of trade headlines in the meantime as traders will wait on more clues from Fedspeak to determine how they should proceed next.