The pair is now up 0.9% on the day to 1.0490, which is the highest level since the end of June. There’s not much of a major catalyst for the euro in trading today as the pair traded very much in line with other dollar pairs earlier on amid the more pessimistic risk mood. But as we get into European morning trade, the euro recovered and is building from that momentum to push higher now.
I want to attribute the move to a more technical push as buyers continue to show interest around the 200-day moving average (blue line) as seen above, at 1.0382 currently, since the end of last week. Adding to that is the defense of key near-term levels earlier today amid the dollar’s advance:
The hold above the key hourly moving averages continue to show that buyers do have the appetite to keep the upside momentum after recovering from a drop towards 1.0225-30 levels early last week.
Looking ahead, a break of 1.0500 will afford buyers much needing breathing room in search of the next leg higher – which could see the pair look towards key trendline resistance from the May 2021 and February 2022 highs, seen closer to 1.0640 currently.