Is the 1.0700 mark just one step too far for EUR/USD buyers? Well, they seem poised at first on the break above the 200-day moving average (blue line) heading into December and then there was that break above the key trendline resistance (white line) since May 2021. It looked optimistic but today's price action is a major blow for buyers, if the chart is anything to go by.

The pair is down 1.3% and looks set for its biggest daily drop since 23 September last year. The move today owes much to a broad bid in the dollar, which is seen gaining over 1% against almost all other major currencies as well.

It's the new year and flows are the story in European trading today.

From a technical perspective though, the drop back below the broken trendline resistance is something to note as sellers also regain near-term control of the pair. It was a quick drop earlier in the session below both the 100 and 200-hour moving averages, seen at 1.0650 and 1.0637 respectively.

As such, sellers are in near-term control now and are seeking a further downside push to vindicate their agenda.

If we do see a daily hold below the broken trendline support noted above, and also below the 1.0500 mark, that will pave the way for a further drop towards the 200-day moving average next potentially - seen at 1.0319 currently.