There's not much of a catalyst behind it but the move continues from after the US CPI data yesterday, in which dollar losses were faded before the end of the day. EUR/USD is down 0.5% now to 1.0930 after failing to get above 1.1000 yesterday, with the 100-hour moving average limiting the upside move. The pair is seeing a bit of a triple top and that could be a bit of a dangerous technical pattern:
The drop now sees sellers in near-term control, although there are large option expiries seen at 1.0925 that could limit price action.
Further short-term technical support is seen around 1.0910-20 but a break there could see the pair fall further towards 1.0800 next, with the 100-day moving average (red line) nearby at 1.0795.
Meanwhile, GBP/USD has also fallen back under 1.2600 to 1.2575 currently after failing to get past key resistance at one-year highs around 1.2660-66 since the end of last week.
The BOE is still a focus point for the pound later on but for now, this is largely a dollar move.
Elsewhere, USD/CAD is also seen up 0.3% to 1.3415 and AUD/USD down 0.7% to 0.6730 at the moment with the latter continuing to see price capped by the 100-day moving average.
