EUR/USD falls back under both its key hourly moving averages
The pair started the week with a climb above both its key hourly moving averages, before testing upside resistance around 1.1340-50 for the most part.
In the early stages yesterday, buyers looked to try and break that swing region but were unable to hold on to the upside momentum before price fell back afterwards.
Of note, buyers failed to defend the 100-hour MA (red line) in the aftermath and that saw sellers push the agenda to test the 200-hour MA (blue line) earlier today.
This comes on the back of a stronger dollar as the risk mood in the market is tilted towards the softer side since overnight trading. Now, we're seeing sellers start to seize back near-term control on a break under the 200-hour MA @ 1.1272.
Keep below that and the near-term bias stays more bearish, though there is some minor support seen around 1.1256-59 for the time being.
But looking ahead, if the risk mood continues to favour the dollar, the swing area around 1.1220-30 will be one to watch before getting back to the 1.1200 handle again.
As for buyers, the challenge will be to try and break back above the 200-hour MA to turn the near-term bias back to being more neutral.
As mentioned before, the euro will have its own challenges to watch in the week ahead as we count down to the 17-18 July summit on the recovery fund. However, the risk mood will be the key driver and main focus for now as we look towards the weekend.
