EUR/USD daily chart
Today’s decline has seen the pair return to Friday’s levels and test below the 1.0700 level. Last week’s close was slightly above this level so it will be interesting to see today if sellers gain more confidence and push below.
For now, large option expiries at 1.0650-60 and 1.0700 are limiting price movement after the recent decline. Weaker than expected Eurozone PMI data weighed on the EUR slightly. The low for the day reached 1.0670.
The sellers have been in control of the pair since last week and have successfully contained a slight bounce earlier in the week. This week’s high failed to break above the 200-hourly MA on the short-term chart.
And that is where we are now. The next key risk event left before the weekend is the US PMI data for June, which will have an impact on the dollar side and broader market sentiment. So it will be interesting to see if the data favors the sellers and aims for a solid break below 1.0700 heading into the weekend.
