EUR/USD eases back to 1.1330 weekly opening price

After surging to as high as 1.1383 the EUR/USD pair lost upside momentum and trimmed some of its gains to move back to the weekly price-gap opening level.

Global markets cheered the latest 'Brexit' polls that showed the 'Remain' camp gaining lead in the upcoming referendum on Thursday, trigger a global risk-on rally and denting the safe-haven appeal of the greenback.

The spillover effect boosted the demand for the EUR/USD pair that earlier rose to 7-day high level before retracing back to session opening level. 

In absence of any important economic releases, traders are likely to derive momentum in the EUR/USD major from the prevailing investor sentiment surrounding the crucial UK-EU referendum.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "The  4 hours chart for the EUR/USD pair shows that the upside strength is limited, given that the technical indicators have turned modestly lower above their mid-lines, although the price is well above its moving averages. Sunday's low was set at 1.1308, and a break below it can see the pair finally filling the weekly opening gap at 1.1270, particularly if local share markets maintain their strong bullish tone."

"A candle opening above 1.1360 on the other hand, should favor a new rally towards the 1.1400/20 price zone, en route to the major static resistance at 1.1460."