The pair touched a high of 1.1745 in trading yesterday, but ended the day around the 1.1700 figure level once again
As the situation in Italy and Spain start to calm down, buyers and sellers are both looking for the next key catalyst in the pair to drive direction. The near-term chart shows that buyers are keeping up a bullish bias still (above the 100 and 200-hour MAs), but a clear break and daily close above 1.1700 will be much needed to reinforce that bullish bias further.
Economic data today isn't likely to move the pair much either, and with large expiries sitting between 1.1675 and 1.1750 - I would expect more of the same type of trading we saw yesterday in the pair.
The key levels for buyers is to stay above the 100-hour MA (red line) and 200-hour MA (blue line) @ 1.1674 and 1.1664 respectively. That will continue to retain the near-term bullish bias in the pair. As for upside levels to eye for, a break of 1.1750 would be much needed to retest the 22 May high @ 1.1830.
Meanwhile, for sellers, it's all about holding out below the 1.1700 handle and breaking back below the 100 and 200-hour MAs. Break back below and the near-term bias turns bearish and the pair can look to revisit the year's lows once again.