It was rapid, with EUR/USD breaking away from the previous high of 1.0695 and falling to 1.0655 on the day. This data does not change the ECB’s plan to act in June, but it is perhaps a first step in keeping its options open thereafter. For now at least, traders are more focused on the next move.
EUR/USD Hourly Chart
And as mentioned before:
“Taking that into account, the Euro bounce we’re seeing may not hold much weight. But at least from the short-term chart above, EUR/USD is working again above its 100 and 200 hourly moving averages This sees the short-term bias becoming at least more bullish. But we will see if the price can hold above last week’s high at 1.0690. the day. If it doesn’t last, I’m inclined to tone it down for a moment.
A good old pop trade fade in the bag. Now we are back to square one on that day. And as price action continues to consolidate around key hourly moving averages, we’ll have to wait for US PMI data to settle the score.
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