EUR/USD knocks on the door of another push above 1.0500

The pair is now up 0.2% to 1.0510 levels with the high briefly touching 1.0523 earlier. That sees the pair also contest a push against its 100-day moving average (red line) at 1.0517 currently. The question for buyers now is can they kill two birds with one stone?

The 1.0500 mark has already proven to be a stubborn resistance point for EUR/USD since the turn of the year. And now we have the key technical level above to add to that. The dam keeps holding price action down but is it finally time for buyers to break it down?

Despite the more subdued risk mood, the dollar is struggling this week. That’s a bit of a surprise even with there being bids in the bond market. That said, 10-year yields in the US are now down to 4.16% after having briefly touched its lowest since October at 4.11% earlier. The December low of 4.12% is seen holding, at least for the time being.

Going back to EUR/USD, the pair is looking to capitalise on this bout of dollar softness at least. A technical breakout above the key levels highlighted there could really see the pair go running up quickly right after. So, just be wary of that.

This article was written by Justin Low at www.forexlive.com.