The nudge lower comes after ECB policymaker Knot's remarks earlier here, suggesting that the central bank is indeed keeping a watchful eye on the euro exchange rate - especially against the dollar, adding to this report overnight here.
While the central bank has stressed that they do not explicitly interfere in the FX market, verbal intervention such as what we are seeing above is but the first step.
And the way to gauge that will be the frequency in which it is being delivered.
EUR/USD is knocked down below its 200-hour moving average (blue line) now and that sees sellers looking to try and seize near-term control of the pair.
There is still some support from the swing region around 1.2110-18 for the time being though before getting to the 1.2100 handle.
That said, beyond verbal intervention, it is hard to imagine the ECB stepping in via other methods - at least for the time being.
The drop above also coincides with a mild bid in the dollar as AUD/USD and NZD/USD eases to session lows of 0.7721 and 0.7214 respectively too. Of note, the drop in AUD/USD calls into question its own 200-hour moving average @ 0.7722: