Apr 18, 2022 09:59AM ET
The EUR/USD pair saw ups and downs yesterday and ups and downs today. The pair closed Good Friday trading at 1.0809. Today, in early Asian trading, the price rose to 1.0820, after which it fell to 1.0872 before rising again to a high of 1.0813. The current rate is at 1.0806, just below Friday's close.
A look at the daily chart below shows that a 2020 low is between 1.07642 and 1.0777 (see red numbered circles and yellow area on the chart below). Although the price hit a low of 1.07568 last week, the downward momentum could not be sustained and the price rebounded. Today's low was above this fluctuation zone. Buyers could continue to sit back in the hope that the price will stay above and eventually start a correction to the upside.
On the upside, a return above the 100-hour moving average (blue line in the chart at the top of the post) at 1.0835 (and below) would be needed to reinforce the bullish bias.
Another hurdle would be a move below the 200-hour moving average (green line in the chart at the top of the post) at 1.08612.
Last Thursday, the price moved above the 200-hour moving average ahead of the ECB decision, but then failed to break through. After the less hawkish and more dovish comments at the Lagarde press conference, the price moved back below the 200-hour moving average.
From a technical perspective, the EURUSD rate needs to rise above both the 100- and 200-hour moving averages if buyers are to be taken more seriously.