- EUR/USD continues range bound trading during Wednesday’s trading session
- Interim support surfaces near the mid-1.1700 area
The EUR to USD exchange rate has been cornered into a range-bound since the beginning of the week lacking any clear direction. The choppy directionless mode left both the buyers and the sellers scratching their heads.
Last week’s candle with a long upper wick continues to put a downside pressure on the pair. The strong upside rejection has left behind a new 2020 high at the 1.1965 – level reached on August 18. On the downside, last week’s low at 1.1754 is the first challenge that the bears need to face.
A break below this support level can open up the door for a further downside momentum and a possible challenge of the support level found near the 1.1700 – 1.1690 band. This support level aligns with multi-year Fibonacci retracement level, which adds more confluence to this level.
Meanwhile, the dominant trend bias remains bullish, while the price continues to stay above the key 200-day simple moving average (SMA) – currently at 1.1153.