Forex snapshot

EUR/USD continues its battle to hold above $1.36, but a lack of fresh news on the UK economy means the pound is drifting again this morning.

Euro and US dollar notes
Source: Bloomberg

EUR/USD rangebound

It seems that the euro has found itself stuck between $1.35 and $1.37 versus the US dollar.

Until this range is broken the pair may find it difficult to make progress in any direction, with these two key levels keeping the price from moving meaningfully up or down.

A declining 50-daily moving average sits just above the day’s current range and, given the failure of EUR/USD to break this at the beginning of the month, the bias lies towards the downside.

On an hourly chart we do have something of a rising trend from $1.3520, while the break of the 200-period MA is a short-term bullish signal.

GBP/USD relies on $1.71 support

The pound hasn’t exactly surged against the US dollar in recent days, but it has certainly found support at $1.71.

So long as this level holds then we would be looking towards further gains in the direction of $1.72, with only a break to $1.70, and then further suggesting the short-term trend has changed.

On a weekly chart the 20-week moving average has done well as a support level so far this year, and even a move lower towards this moving average would not signal the end of the GBP/USD rally. 

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