Recovers above 100 hourly SMA, Monday low is key support

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  • EUR / USD is moving above the 100 hourly SMA during the Asian session.
  • The bulls failed to secure a close above 1.20 on Monday.

EUR / USD’s slide below the 100 hourly simple moving average was short-lived. The pair is currently trading above the key Simple Moving Average (SMA) located at 1.1925, after hitting a low of 1.1923 on Monday night.

Despite the rapid recovery to levels above the 100 hourly simple moving average, the immediate bias remains neutral. That’s because the pair has yet to overcome the psychological hurdle of 1.20. EUR bulls were unable to establish a foothold above that hurdle on Monday, having faced a similar pushback on September 1.

More importantly, the pair ended up drawing a red candle with a long upper wick. The bias will turn bearish if the Monday low of 1.1922 is broken. That would shift the risk in favor of a drop to 1.18 (November 23 low).

EUR / USD daily chart

EURUSD

EUR / USD technical levels

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