EURUSD Pulls Back From 1.1585 Resistance as 100-Day Moving Average Holds the Key
Key Takeaways
- •EURUSD rose above its 100-day moving average for a second straight Friday, but the breakout again failed to hold.
- •The pair reached 1.1585, just below the 1.1586 resistance area tied to a swing top and a 50% retracement.
- •A prior pullback after last Friday’s failed breakout took EURUSD down to 1.1511, although that level stayed above 1.1500 support.
- •The 100-day moving average remains the key reference for deciding whether the recent advance can extend or remains range-bound.
- •If EURUSD regains the 100-day moving average, traders will watch 1.1586 first and then the 200-day moving average near 1.1627.
The EURUSD rose sharply during the European and early North American sessions, but the advance met a familiar technical barrier.
For the second Friday in a row, the pair moved above its 100-day moving average, only to struggle to maintain momentum. This time, buyers drove the exchange rate into the next important target area near 1.1586, where the top of a swing area aligns with the 50% retracement. The high reached 1.1585, essentially testing that level to the pip, before sellers took control.
The reversal has pushed the EURUSD back below the 100-day moving average, once again putting the upside attempt at risk. That makes the average more than just another chart level: it is the line traders are using to judge whether the recent push higher can extend or whether the pair remains confined to the same range that has been capped twice in as many weeks.
The price action closely resembles last Friday’s trade. The EURUSD also rose above the 100-day moving average then, but that breakout failed. The weakness that followed eventually dragged the pair down to 1.1511 yesterday. Even so, that low remained above key swing support around the 1.1500 level.
As the week draws to a close, the 100-day moving average remains the main reference point. A close near that level would effectively leave the decision for next week, with traders likely to view it as the dividing line between a more bullish and more bearish technical tone.
On the upside, a move back above the 100-day moving average would bring 1.1586 back into focus. A sustained break above that area would strengthen the bullish bias and open the way toward the 200-day moving average at 1.1627.
On the downside, remaining below the 100-day moving average would keep buyers under pressure. The next support levels are the 100-hour and 200-hour moving averages near 1.1539, followed by 1.1524. A break below those levels would shift attention back to the key 1.1498–1.1506 swing area.
For now, the 100-day moving average is the battleground. Above it, buyers have another chance. Below it, the risk increases that Friday’s breakout will turn into another failed attempt.