EUR/USD: Buyers still poised to push price higher

Buyers finally showed the kind of conviction needed to push price higher on Friday but the move up was stalled by the 76.4 retracement level @ 1.1641. An attempt to break free of said resistance level earlier today also failed as highs reached 1.1653 before falling thereafter.

In the near-term, as long as price stays above 1.1600 I'd say bias still favours buyers as it sort of defines the "exhaustion level". If price can't consistently hold a move above the figure level, then it's looking more and more likely we'll be testing the 100-hour MA (red line) instead of making a run higher.

But in terms of key technical levels in the near-term, the 100-hour MA @ 1.1576 will still remain key as it would define the real bias in the pair. For now though, price isn't running away just yet and with UK traders away today we may see more subdued trading. Add to the fact that we have large expiries at 1.1625, price action is most likely to trade around current levels.

Looking at the bigger picture:

The recent bounce close to the 1.1300 handle has seen the pair erase much of its August losses and that is a good sign for buyers as we close out the month. June and July trading displayed consolidation (price changes were less than 0.1% for each month) and given the context of the move to a low of 1.1301 in the middle of the month, to only be down by 0.6% can be seen as a win for buyers now.

However, key technical levels still need to be breached before calling this rebound a reversal. Of note, the 1.1700 handle needs to be taken out but more importantly, the 100-day MA (red line) @ 1.1768 will ultimately be the key level to determine whether this rebound will be yet another short-lived one or a sustainable one.

In terms of fundamentals, key risks still lie ahead for the euro as we still have the Italy budget issue, Turkish crisis, potential threat of US auto tariffs, and flagging economic growth among other things. Some factors there to consider in terms of downside risks.

                                Start Trading with Free $30    : CLAIM NOW $30 

     VERIFY YOUR ACCOUNT AND GET YOUR $30 INSTANTLY ,MAKE MONEY WITHDRAW !!

               IT IS POSSIBLE TO SHIFT FROM $30  TO  $1,000,000  TRY  TODAY

IF  YOU  FACE  ANY  PROBLEM  TO  GET  THIS  OFFER  PLEASE CONTACT US FOR

               SUPPORT ,  CLICK  SMS  BAR  ABOVE  THEN  TALK  TO  US