Merkel will be meeting with regional leaders later today, and a 'lockdown light' is reportedly planned for Germany - possibly even lasting up to a month.
Meanwhile, Macron will be addressing French citizens later today where he is expected to announce tighter virus restrictions somewhat similar to a lockdown, but there will be more flexibility afforded this time around.
The potential impact on two of Europe's biggest economies is not resonating well with the euro and the single currency is trading below 1.1800 against the dollar:
Topside price action was limited around the 100-hour MA (red line) in trading yesterday as sellers leaned on that level to maintain some near-term control.
The push below the 200-hour MA (blue line) and 1.1800 now sees them establish a more bearish near-term bias with further support seen closer to 1.1762-64 next.
Just be mindful that when European traders enter later, there could be more reactive flows in the euro and European assets in general in anticipation of what is to come from Germany and France later in the day.
In any case, the technical bias in the pair is now favouring sellers in the near-term unless buyers can work their way back above 1.1800 and the 200-hour MA @ 1.1804.
As for any major downside push, sellers also still have work to do in searching for a firm break/close below the 1.1700 handle in the bigger picture.