The drop today brings us back to where we were on Friday, testing the waters below the 1.0700 mark. The close at the end of last week was just above the figure level, so that will be one to watch again today to see if sellers can find more conviction for a break under.
For the time being, large option expiries at 1.0650-60 and 1.0700 are keeping price action more contained after the earlier fall. The euro area PMI data was softer than anticipated and that weighed on the euro slightly. The low earlier today touched 1.0670.
Sellers are holding control of the pair since last week and have done well to fade the slight bounce earlier in the week. The high this week failed to breach the 200-hour moving average on the near-term chart, for what it is worth.
And that brings us to where we are now. The next key risk event left before the weekend will be the US PMI data for June. That will impact the dollar side of the equation and broader market sentiment. So, we’ll see if the data will side with sellers in chasing a firmer break below the 1.0700 mark to end the week.
This article was written by Justin Low at www.forexlive.com.
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