EUR/USD is battling 1.0950, giving back gains in European trading on Monday. The US Dollar is rebounding in tandem with the US Treasury bond yields, weighing on the pair. In the absence of top-tier economic data and a holiday in the US, risk sentiment will likely play a pivotal role.
The EUR/USD pair hovers around the 1.0950 level without clear directional strength. The pair has been range trading for over a week now, and the daily chart shows that the risk skews to the downside.
The 20 Simple Moving Average (SMA) turned flat, providing dynamic resistance around 1.0980. The SMA has attracted sellers pretty much since the month started. Meanwhile, the 100 and 200 SMAs lack directional strength far below the current level, reflecting the absence of directional conviction. Finally, technical indicators develop within negative levels but head nowhere.
In the near term, and according to the 4-hour chart, EUR/USD is neutral-to-bearish. It has been trading between directionless 100 and 200 SMAs for over two weeks, with a flat 20 SMA in between. Technical indicators stand below their midlines without enough strength to confirm another leg south.
Support levels: 1.0920 1.0875 1.0830
Resistance levels: 1.0980 1.1025 1.1060