EUR/USD Price Analysis: Flips 200-hour MA resistance and rises above 1.09
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- EUR/USD has crossed the 200-hour average hurdle at 1.0888.
- Technical studies indicate a strengthening of the upward momentum.
- Support at 1.0888 is the level to beat for the sellers.
EUR/USD is gaining altitude in Asia. The currency pair toppled the 200-hour moving average hurdle a few minutes before press time and is currently trading at session highs near 1.0920.
The single currency is drawing bids despite the US Senate struggling to approve the coronavirus fiscal stimulus bill. As per the latest reports, the bill will be put to vote in the Senate in an hour from now.
If the bill is passed, the risky assets could rally, weakening the haven demand for the dollar and powering further gains in EUR/USD.
Froma technical perspective, the upward momentum looks strong with the 50- and 100-hour averages trending north. The averages produced a bullish crossover earlier this week. The hourly chart RSI is looking north and reporting the strongest bullish bias since March 3.
The immediate bullish case would further strengthen if the current hourly candle closes well above 1.0888. That would establish a higher high and open the doors to 1.0982 (March 18 high on the hourly chart).
The bias as per the hourly chart would turn bearish if the spot drops below 1.0785, invalidating the higher lows setup.
Hourly chart
Trend: Bullish
Technical levels
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