EUR/USD trims some of its overnight gains in a fall to 1.1946
The bond market is certainly wasting no time in responding to the Fed as Treasury yields surge higher to start European morning trade. In turn, that is seeing the dollar catch a wave of bids across the board with EUR/US falling from 1.1980 levels to 1.1946.
The pair came close to testing some resistance from the 38.2 retracement level @ 1.1991 - which limited last week's gains - and has now reversed course.
Buyers are still keeping near-term control though as price action holds above the key hourly moving averages @ 1.1920-31. So, that is the key level to watch in case the dollar push here starts to go in search of further downside momentum.
Just keep in mind that there are large expiries on either side of the current spot price at 1.1900 and 1.2000 (also one at the latter for tomorrow), so those are also some notable price points to consider in the day ahead.
