EUR/USD looks rather vulnerable after yesterday's plunge


The greenback is keeping steadier across the board, with EUR/USD lingering at the lows for the year after the drop below daily support @ 1.1525-29 and the 1.1500 level yesterday.

The decline also sees sellers trying to establish a firmer hold below the 50.0 retracement level of the swing higher from March last year to January, seen @ 1.1493.

Keep below that and the 1.1500 level and sellers will arguably have more incentive to keep with the downside break in the sessions ahead.

At this point, it is tough to really pick at support levels for the pair and that presents some scope for the dollar to gain further (euro to soften).

Elsewhere, USD/JPY is keeping steadier close to the 114.00 level while GBP/USD is trying to stave off a break below the 1.3400 handle.

Commodity currencies are also softer with USD/CAD testing waters above 1.2500 and AUD/USD down 0.2% near 0.7300 after a weaker Australian jobs report earlier in the day.

As much as the US CPI report is still reverberating across markets, the inflation debate won't be settled any time soon and the early moves here may be a little too hasty - especially when central banks are going to keep fighting back.

That said, it is also tough to argue against the technicals so definitely bear that in mind.