EUR/USD: bulls in control on 1.13 handle

By FXStreet FXStreet (Guatemala) – EUR/USD has been a strong performer since its recovery from below the 1.11 handle and has been up to test the mid-point of the 1.13 handle in early Asia.

EUR/USD was taking full advantage of the greenback’s weakness at the end of last week and it extended the gains from when EUR/USD crossed back through the 200 SMA to the upside.

Risk-off markets have been seeing a continuation of the carry being unwound, while otherwise, there are risks to the downside in respect the ECB’s dovish tone of late. This week also brings the FOMC and volatility tells us that there is still a great deal of uncertainty leading into this month’s meeting as to whether the Fed will hike or not.

EUR/USD 4hr chart levels

Technically, Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart the price is above a bullish 20 SMA, although she added, “The technical indicators have lost upward strength and turned flat, with the RSI at 70. The immediate resistance comes at 1.1365, the 50% retracement of the same rally, with a break above it favoring a steady continuation towards the 1.1440/50 price zone.”
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Source:: FX Street