EURUSD buyers have held up the support level at 1.1445, causing the price to rise again. The EURUSD pair is testing Friday’s high, and moving above the 100- and 200-hour moving averages signals an upward trend. During the Asian session, the EURUSD hit a pause at the 200-hour moving average near 1.1518 before dropping below the 100-hour average at 1.1496. Buyers stepped in as the pair got close to the previous low at 1.1445.

Fed Remarks Impact

Dovish comments from Fed Governor Bowman sparked new selling of the USD, hinting at a possible rate cut in July. This pushed the EURUSD above the hourly moving averages, bringing it close to Friday’s high of 1.1543. If it breaks above this level, the pair could aim for higher targets at 1.1578, 1.1614, and 1.16297. If the pair can’t stay above the 1.1518-1.1496 range, sellers may regain strength, pushing toward 1.1466 and then the 1.1445 support. Key resistance levels to watch are 1.1543, 1.1578, 1.1614, and 1.16297. Support levels are at 1.1518, 1.1496, 1.1445, and 1.1416. The overall trend remains upward as long as it stays above these averages. The defense of 1.1445 indicates a key area where buyers are interested. This level has provided a solid base for the price to bounce back, even during brief selloffs. The move above the 100- and 200-hour averages suggests a renewed bullish attitude, but we need more confirmation. Price action is moving through distinct zones. The retest of last Friday’s high didn’t result in an immediate decline, which is important to note. A clear breakout above 1.1543, along with holding that level in future sessions, would confirm a potential rise. The subsequent targets, 1.1578 to 1.1629, are significant as they show where the price struggled before.

Trading Outlook

We are also aware of the risks. If the price drops below 1.1496, especially if it reaches 1.1466 and tests 1.1445 again, it may indicate a shift in short-term sentiment. In this scenario, it’s not just a failed rally; it opens up the possibility of reaching the 1.1416 area and possibly lower if the USD strengthens. From a trading perspective, staying focused on key levels is crucial. While the price holds above the mid-1.1400s support, any dips might present good buying opportunities. However, we need to watch for momentum through volume and hourly closes to confirm confidence. If the price hovers near resistance without selling pressure decreasing, it could be a signal for re-entry or additional positions. It’s important to avoid chasing the market without waiting for clear breakouts and retests, as many traders can get caught off guard by acting too quickly. Right now, we see upward momentum remaining strong, but it relies heavily on maintaining support levels that have shown reliability. Any drop below those levels will not just be noise; it will indicate whether broader sentiment is shifting or simply taking a break. Create your live VT Markets account and start trading now.

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