The greenback managed to pare a bit of its losses late yesterday in US buying and selling and that’s seeing EUR/USD maintain beneath 1.0900 nonetheless regardless of the bounce yesterday. The pair is buying and selling little modified at present as all eyes flip in direction of the ECB coverage choice later. Here is the large image search for the pair at present:

As you’ll be able to see, the bounces within the final two weeks are technical-related. It comes amid a take a look at of the 200-day transferring common (blue line) and that may stay the important thing line within the sand forward of the ECB at present. The extent sits at 1.0843 in the mean time.

Regardless of the push larger yesterday, consumers failed to hold on to a breach above the 1.0900 mark. That subsequently led to a fall again beneath each the 100 and 200-hour transferring averages as nicely, seen at 1.0883-90 now. As such, the near-term bias has returned to favour sellers as we gear in direction of European buying and selling now.

The important thing danger occasion for the euro at present would be the ECB coverage choice. The central financial institution is anticipated to stay with the established order and go away charges unchanged, whereas preaching the mantra of being data-dependent. ECB president Lagarde’s press convention would be the most important factor to observe. Any change in her language or tone and pushback on market pricing would be the factors of scrutiny for merchants.

As for the greenback aspect of the equation, the push and pull within the bond market is definitely not making issues any simpler up to now this week. For now, 10-year yields are nonetheless retaining above the 200-day transferring common of 4.10%. That continues to present greenback bulls a purpose to maintain the foreign money in a extra resilient spot on the week.