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

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