EUR/USD inches towards the 200-hour moving average
Price is slipping a little as the dollar is seen holding steady as we begin the session and sellers are looking to test the 200-hour MA (blue line) @ 1.1194 once again. The 100-hour MA (red line) also sits nearby @ 1.1188 and those levels will be key to watch out for in the session ahead as it could precipitate a downside extension following the overnight drop.
Buyers barely defended the near-term bullish bias overnight with some help from support around 1.1190 but so far they’re not convincing of any further retracement today. Of note, there are also large expirires resting at the 1.1200 handle so that could play a part in attracting price action before they roll off later in the early US morning.
The key risk event for the euro in the European morning will be the release of the manufacturing PMI data but they are mostly final readings so any impact should be rather muted. That said, any surprises from the initial readings will be able to give the single currency a nudge or two so just be wary of that.