EUR/USD leans against next key technical hurdle in thin trading

It is a bit of a bore in trading today as it is an extended weekend in Europe. So, let’s try and take stock of the technicals with there being little else to really work with. First one’s up is EUR/USD and the daily chart comes into focus.

The pair is dipped last week back below 1.0800 and has stuck with that through the Easter break so far. As things stand, sellers are dragging price down to test the trendline support (white line) from the October 2023 and February 2024 lows. That levels is now seen at roughly 1.0788.

Break below that and sellers will continue with the downside momentum, with eyes on the February low of 1.0695.

In trading this week, both the euro and dollar side of the equations will come into play. For the former, we’ll have inflation data to work with. And for the latter, the labour market report is the key one to watch.

At the balance, the US non-farm payrolls should outweigh everything else. However, we’ll have a few days to work with until then. As such, the technical consideration above is also something to be mindful of.

On the flip side, the first hurdle for buyers is getting price back above the 1.0800 mark. Then, there is the 100 and 200-hour moving averages – now seen at 1.0809 and 1.0831 respectively – to get past. And that is just to wrestle back near-term control of the pair.

Hence, sellers are still poised at the moment as we await liquidity conditions to pick up again tomorrow.

This article was written by Justin Low at www.forexlive.com.