EUR/USD lacks catalyst

Attempts to tackle any upside through the 100-day moving average have been denied yet again today, with price action in EUR/USD lacking any momentum despite the surging upside moves in GBP/USD.

Tomorrow may bring some much needed volatility as the manufacturing and services purchasing managers index release is likely to provide some near-term direction for the euro.

As long as the 1.3580 level remains elusive to a daily close there is still a propensity for a lower single currency, with 1.3550 now acting as intraday support. Base support is the 1.35 metric and – as mentioned yesterday – is the real barrier between current price levels and a return to the 200-day moving average. Any break through the 100-DMA will see the 1.3620/30 level act as a magnet.

The dollar index failed to break through 81.50 yesterday, so the greenback has been subjected to some technical selling. For now the 81.09 and 200-hour moving average should see bidding for upside.

Spot FX EUR/USD chart

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.