EUR/USD back up above 1.2100 and tests its key hourly moving averages

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The pair continues to erase losses from earlier in the week as the dollar is seen a tad softer to get things going in European morning trade. That said, the range for the day (25 pips) is still relatively minor so there's that to consider.

It could perhaps be a slight extension of the range but buyers are testing the waters in trying to seize back near-term control in the pair currently.

The 100-hour moving average (red line) limited gains earlier closer to 1.2100 but we're now seeing the high touch 1.2107 and that runs up against the 200-hour moving average (blue line) to start the session.

As such, the confluence of key technical levels around 1.2096-07 will be the key spot to watch as we navigate through the trading day ahead.

Keep below that and sellers retain a more bearish near-term bias but break above and buyers will establish a more bullish near-term bias moving forward.

There is still a major push and pull ensuing with regards to the dollar this week but with USD/JPY receding after testing 106.00, cable nearing 1.4000, and AUD/USD back near the highs for the year around 0.7800, things are certainly heating up.

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