EURUSD pulls back after testing parity levels

A significant improvement in market moods could be spotted at the beginning of a new month with US indices rallying during the first two sessions of October. Risk-on moods could also be spotted on the FX markets with EUR, AUD and NZD regaining some ground against the US dollar.  However, upbeat market sentiment is being put to the test today with a rally on equity markets halting and the US dollar regaining some strength.

EURUSD tested 1.00 mark this morning for the first time since September 20, 2022. The pair broke above the 200-period moving average on the H4 interval yesterday and the upward move accelerated afterwards. However, it was halted at the aforementioned 1.00 area today. Daily low was painted near the 200-period moving average in the 0.9920 price zone. This zone is a key near-term support to watch and a break below it would pave the way for downward move deepening towards the 0.9860 zone.

Source: xStation5