EUR/USD keeps lower but buyers continue to defend key near-term level

EUR/USD is trading in a relatively narrow range, as price continues to test the 200-hour moving average

EUR/USD H1 02-04

Amid a hold below the 1.1000 level, sellers are keeping the pressure to the downside but are still unable to firmly break below the 200-hour MA (blue line) @ 1.0937 currently.

That remains the key line in the sand before price tests support at the 1.0900 handle next.

A firm break below the 200-hour MA will see sellers establish more control in the pair after having already broken below the key daily moving averages earlier in the week.

If they can work their way towards a break below that and the 50.0 retracement level @ 1.0900, that will open up the path towards a retest of 1.0800 next with the potential to look towards the end-of-March lows just above the 1.0600 level.

For now, the dollar is keeping its footing despite risk currencies retracing losses so far today. As for EUR/USD, the key risk for the greenback is if price starts to chase a move back above 1.1000 and towards the 100-hour MA (red line) @ 1.1015.

European equities has already shown signs of stuttering in the early morning and if US stocks follow in the same vein later on, the greenback could gain some momentum to push a little higher as it did yesterday as well.

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