EUR/USD is resting in between the key hourly moving averages now
Price action has been rather limited so far this week with the downside initially limited by the 100-hour MA (red line) while any topside move is capped by the 200-day moving average (today @ 1.1152).
But we are seeing a break from the "range" as price slips back under the 100-hour MA in Asia Pacific trading, leaving the near-term bias to be more neutral now.
That indicates that sellers are trying to wrestle back some near-term control but they have to push price towards a break of the 200-hour MA (blue line) @ 1.1113 to solidify any further momentum to the downside.
For buyers, they have more work to do in having to move back above the 100-hour MA @ 1.1143 as well as continue to challenge a break of the 200-day MA @ 1.1152.
Looking ahead today, German Ifo data should reaffirm a rebound in economic sentiment and that may give buyers something to chew on but I doubt it'll be of much significance. Instead, I'd look towards EUR/GBP flows as being the bigger catalyst for any move.
If the pound continues to slide further on the week, a boost from the EUR/GBP complex may perhaps help to underpin the euro a little bit more against the dollar instead.
Also, just be wary of large option expiries at 1.1140-50 today. That may also help to limit any upside potential in the pair until they roll off in the sessions ahead.
