EUR/USD rally starts to ebb
The pair has recovered somewhat from the beating it received after last week’s European Central Bank (ECB) meeting, but EUR/USD remains well below last week’s highs.
Having bounced overnight from below $1.23, upward momentum appears to be fading, raising the prospect of a fresh move lower. The 50-day simple moving average (SMA) at $1.2280 is the first area of possible support, and then below the $1.2165. A longer-term rally needs to clear $1.2450.