EUR/USD trades near flat levels on the day
The technical signs are pointing to a more bullish near-term run in EUR/USD as price holds above both key hourly moving averages and we're starting to see a crossover with the 100-hour MA (red line) moving back above the 200-hour MA (blue line).
For now, swing region resistance around 1.1350-60 is capping gains in the pair as buyers continue to remain in near-term control ahead of key risk events today and tomorrow.
Later today, we'll see the release of the January FOMC meeting minutes and that will be a key factor that could potentially affect dollar sentiment this week. Markets will be looking for clues on the rate hike cycle as well as balance sheet normalisation so expect traders to react accordingly once the minutes are released.
And then tomorrow, we'll have a slew of PMI survey releases from Europe. With the ECB having grown more data-dependent and markets growing increasingly bearish towards the Eurozone economic outlook, tomorrow's data could cement expectations of a dovish shift by the central bank in the March meeting to come.
Key downside levels to watch will be the confluence of support around the 1.1300 handle with both the key hourly moving averages also sitting at the level. As for upside levels, look towards the 1.1350-60 to cap near-term gains before further resistance is then seen around 1.1374 and then the 1.1400 handle.
