The pair was hopeful for a firm break above the swing region resistance around 1.1340-50 earlier in the day, but buyers are finding it more tough to hang on to the momentum in European trading as we see a quick fall to a session low of 1.1325.
Price is now hovering around 1.1330 levels but for buyers, they need to keep above the swing region of 1.1340-50 in order to try and break away from the choppy and more rangebound trading seen since the middle of June.
The near-term bias in the pair still favours buyers but the mood today is a little more tepid with European equities seeing gains pared and US futures keeping a touch lower to start the session. S&P 500 futures are down by 0.3% currently.
For the euro, the next week is going to be crucial as we count down to the EU summit on 17-18 July. The focus will be on whether or not there will be a compromise on the recovery fund but more likely than not, the can will be kicked down the road once again.
That could potentially weigh on the euro but on the flip side of things, a smooth agreement could bolster euro and risk sentiment; thus, underpinning EUR/USD.