The EUR/USD pair is on the rise, hitting a fresh daily peak as it breaks past the halfway mark of its trading range since the low point in September 2022, which is pegged at 1.04053. This movement is visible on the daily chart.
Zooming in to the hourly chart, the currency pair has been waffling around this midpoint over the last five trading days—bobbing above it and dipping below it intermittently.
Last Wednesday’s FOMC announcement triggered a sharp drop in the pair, bringing it down to a low of 1.0343, just a whisker above November’s low of 1.03322. This was the pair’s weakest showing since last year. Then on Friday, after testing Wednesday’s low, strong buying interest stepped in and pushed the pair higher. That day’s uptick hit a wall at the lower edge of a swing zone set between 1.0448 and 1.0461.
Right now, there’s a bit of resistance sitting around 1.0424. Above that, the declining 200-hour moving average at 1.04384 presents another hurdle. Looking the other way, the 100-hour moving average at 1.03976 has been something of a pivot point lately, with the price crossing back and forth. If the pair consistently falls below this level, it could signal a tilt towards a bearish technical outlook. For the moment, where the pair goes in the near term will depend on whether it can keep trading above the midpoint and tackle those coming resistance levels.
