EUR/USD falls back under its 200-hour moving average
The pair is tracking a little lower to start the session, falling to just under 1.0880 and notably under its 200-hour MA (blue line) @ 1.0885.
That is helping to see sellers seize near-term control if they can keep a break below the near-term level and possibly open up further downside momentum moving forward.
The market remains relatively quiet and so far, this is the only notable move in the major currencies space so far today.
Looking at weekend news, the "frugals" presented their counter-proposal to the Franco-German plan for the recovery fund, in which they recommended the fund to be financed via loans, as opposed to grants seen in the Franco-German proposal.
The continued rift between EU member states on this matter won't make for pleasant viewing in the euro in the coming weeks, with European Commission president set to outline a new proposal on the matter this week (which will then be discussed).
The thinner liquidity conditions will make it harder to get a sense of the market moves to start the week but the technical picture should offer the best guidance in that sense.
For now, EUR/USD sellers are making a play but let's see if they can build on that further. There is some support at the 61.8 retracement level @ 1.0864 before some minor support is seen closer to 1.0850. Beyond that, the 1.0800 level will be the next downside target.
