EUR/USD daily chart
This was perhaps coming after the troubling end to last week for EUR/USD, as outlined on Monday here. With the dollar maintaining decent form through this week, the pair is now slipping closer towards its 100-day moving average (red line) – seen at 1.0806.
That alongside bids layered at the 1.0800 mark is now the key technical test of support for EUR/USD.
Buyers will have to hold at these levels to maintain the upside momentum. Otherwise, we might be in store for a steeper fall in the pair. The 100-day moving average already asserted itself as a key support level back in March, so to break lower here will see sellers feel reinvigorated to chase a further pullback.
The next plausible target could even extend towards 1.0500 levels from the lows seen in January and March itself. But let’s take things one at a time.
For today, there are also large option expiries around current levels that could add to a defensive layer for EUR/USD. That might be what buyers need to at least keep the pair afloat before they roll off later in the day. So, just be mindful of that for now.
However, if that itself is not enough to keep the pair above 1.0800 into the daily close, then surely this is not the time to be chasing dips especially with there being little technical support layers below the highlighted region.