EUR/USD has nearly pared all of its gains on the day now
The pair now heads back towards a test of the 100-hour MA (red line) after failing to hold a break above the 200-hour MA (blue line) with minor resistance close to 1.1550 helping to limit gains on the day.
This comes as Italian bond yields are starting to rise higher again with 10-year yields now down by only 2 bps after having been 18 bps lower at one point earlier today:
FTSE MIB is now only up by 0.5% on the day, trading at session lows as the relief rally from Moody's rating review is starting to fade already.
As for EUR/USD, if price starts to move back below the 100-hour MA, the near-term bias will then turn more bearish. There are decent sized expiries that will be rolling off later today at 1.1500, so that may limit losses but overall this shows that the signs aren't looking too good for buyers.
The drop in the euro against the dollar is also dragging down the pound, with cable also heading lower now towards the day's lows trading at 1.3055.
