The pair is pulling slightly higher as the dollar trades more mixed on the day. In the past few sessions, there is a sense of sluggishness as sellers gradually drag price back under 1.1300. However, the shove lower yesterday was defended by some minor support around 1.1235-40.
Buyers have built on that and we are seeing a push back towards the key hourly moving averages @ 1.1292-97. There is an added layer of resistance around the 1.1300 level as well.
However, sellers are standing their ground so far in defending the resistance region above.
In European morning trade, we are seeing EUR/USD come off earlier highs of 1.1296 to 1.1280 currently. That sees the near-term bias keep in favour of sellers so long as price action stays below the levels highlighted.
In the bigger picture, the pair is still largely struggling for direction. The latest omicron saga is taking some of the shine off the dollar against the euro but it's not completely gone.
The Fed has reaffirmed that it is staying the course to taper faster and perhaps proceed quicker to hike rates. That remains a major tailwind for the dollar and will keep it more resilient against the euro - which is not getting much help from the ECB's 'transitory' narrative.
