As Ukraine delegation arrives in Belarus for talks with Russian counterparts, the EURUSD has rebounded back higher and above the 1.0900 level.
The EURUSD fell in the Asian session and into the European morning session. The low price saw the pair move to a low of 1.0805 level, just above the natural support at 1.1800. Looking at the daily chart above, the low reached the lowest level since May 18, but comfortably above a swing area target between 1.0764 to 1.0776 (see red numbered circles on the chart above). The low price from 2020 reached down to 1.06365. Those levels remain targets if the downside momentum resumes, but for now, there is some intraday positive technicals.
You can see that on the 5-minute chart below.
Looking at the chart, the price had traded below the 200 bar MA (green line) since last breaking below during Thursday’s trading (the pair fell below both the 100 and 200 bar MAs near 1.11056. That 200 bar MA had not been broken until earlier today, when the price briefly moved above but quickly failed. More recently, the price moved above near 1.0873, and saw more upside momentum on that break.
The price high has reached 1.09244 which is still short of the close from Friday near 1.0933. Getting above that closing level and erasing the declines is still a requirement. Will it take more positive news out of the meeting between Ukraine and Russia? Needless to say it would be beneficial.
What would ruin the short term positive bias?
Watch the low from Friday at 1.08848. Move below that and the buyers will start to feel a little uneasy. Additional anxiety would be a move back below the 200 and 100 bar MAs currently near 1.0867 and 1.0872. If the price heads back below those levels, all bets are off for more additional probing.
Can seller lean near the close from Friday?
Sure…. The day is still negative from Friday and that can give traders cause for pause. The move today, in the move above the 200 bar MA took heat of the trend move. It does not fully put the buyers in control. They are just in the game and providing some fight.