Yesterday the EURUSD initially fell but found enough buying pressure to turn north again and closed near the high of the day, however closed within the previous day range, suggesting a weak bullish momentum.
The pair is trading below the 10, 50 and the 200-day moving averages that are acting as dynamic resistances.
The key levels to watch are: A daily resistance at 1.1097, the 200-day moving average at 1.1019 (resistance), 50-day moving average at 1.0987 (resistance), the 10-day moving average at 1.0942 (resistance), a daily resistance at 1.0900 and a daily support at 1.0819.
The single currency marked a neutral session after choppy trade on Wednesday. The session started at 1.0865 and closed with only 2 pips higher. The graphics continue to develop under moving averages, while the index of relative strength remained on neutral territory. If the downward trend of the last few sessions continue, we can expect a breakthrough of levels at 1.0810.
The bear rally in the EUR/USD seems to have dried up as we can see less volume in the last few days. This could mean a change in trend. If price manages to climb above 1.1050 and close above we have a strong confirmation that a bull trend is forming.
The pair formed a spinning top and a doji candlestick on the daily time frame above the support at 1.0820 and bounced off that level. I think it's climbing towards 1.1000 again, but nothing is certain before the fundamentals tomorrow.
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