The EURUSD moved to the lowest level since May 28, 2020 (22 month low) on its way to session low at 1.1058. The price has seen a bounce off of the low. The CPI flash inflation report helped to give the pair a boost. ECB’s de Guindos said that he does not see a recession in the euro zone because of the invasion and Ukraine. That also gave the EURUSD a reason to rebound.
The move higher saw the pair move up to a 1.11187. Looking at the hourly chart below, the January low came in at 1.11207 just above that level. The low from last week extended below that level to 1.11061.
The area between each of those lows (between 1.1106 and 1.11187) is now close resistance. If the price can move back above that area in trading today, we should see more upside momentum/probing.
Break above, and the low from Monday’s trade at 1.11414 would be the next target followed by the falling 100 hour moving average at 1.11769.
Recall that the high prices from last Friday, Monday, and Tuesday stalled right near that falling 100 hour moving average. Ultimately getting back above that moving average would be needed to increase the bullish bias in the pair.
Conversely, stay below the 1.11207 level and the sellers remain in full control
