EUR/USD rebounded from a key support cluster near 1.15733 after sliding sharply into the new trading week, and now trades into a swing area between 1.1613 and 1.16215. The 200-day moving average at 1.16305 stands as the next major test for buyers.
Buyers defend the 100-day average
The pair dropped sharply late last week, and the selling carried into the Asian-Pacific session at the start of the new week. The decline stalled near 1.15733, where the 100-day moving average met the 38.2% retracement of the move up from the end-of-July low. Buyers leaned against that support cluster and pushed the price back higher.
A cluster of resistance ahead
The rebound has lifted the pair into a swing area between 1.1613 and 1.16215. A move above that zone would put buyers in view of another resistance cluster: the 200-day moving average at 1.16305, the 100-hour moving average at 1.16359, and the 200-hour moving average at 1.16558.
Sellers from Friday can still keep control, but only by holding the price below the 200-day moving average at 1.16305. A break above that level would disappoint the sellers and shift the short-term bias toward buyers, giving traders more confidence to target the higher levels.
Bessent's comments ease rate-hike fears
Treasury Secretary Scott Bessent helped fuel the rebound by saying the Fed typically does not raise interest rates in response to inflation caused by supply shocks. Because higher oil prices represent a supply shock, his remarks took some edge off expectations for tighter Fed policy.
Source: Investinglive RSS Breaking News Feed
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