EUR/USD inches lower towards 1.15 as the dollar gains some traction on the day
EUR/USD touches a low of 1.1522
The greenback is recovering a little on the session following overnight losses as it gains against the rest of the major bloc. The yen and aussie has seen gains pared against the greenback a little while the likes of the euro and pound fell to a session low a short while ago.
As mentioned earlier here, the dollar is in a tricky spot right now. From a technical perspective, it is challenging key levels with EUR/USD looking to hold a move above 1.1500, AUD/USD running into the 100-day moving average, USD/CAD testing the 100-day moving average overnight, NZD/USD testing the 200-day moving average, and gold knocking on the door of the $1,300 handle.
When there are so many key levels called into question, it is basically begging the question of a strong breakout against the currency in question and in this case, it is the dollar. For now, dollar buyers are winning out a little as the greenback recovers slightly on the day but the key here will be to watch for EUR/USD price levels in my view.
As long as price holds above 1.1500, it will give belief for dollar sellers to keep up with the recent momentum. Just be wary that there are large expiries at 1.1500 for the pair today as well. But at this point in time, it's all about can buyers hold on to a break above the 1.1500 handle in the sessions to come.
Inadvertently, that will also answer the question of whether or not the dollar can hold on at key levels against the other currencies in question above. As for catalysts on the day, watch out for Fed speakers to come which will include Fed chair Jerome Powell later on.