The pair got a bit of a lift back towards parity yesterday as the dollar slumped after the poor US services PMI data. However, that jump was short-lived as price fell back below the key figure level and we are seeing a slight nudge lower on the day. The overall range today remains rather tentative (36 pips) as traders are keeping the downside bias below parity but not chasing an extended move lower just yet.
All eyes are on Fed chair Powell's speech at Jackson Hole later in the week for any firm convictions.
But given that sellers are in control and the downside bias is staying intact, it wouldn't take much of a hawkish resolve from Powell to send the euro reeling again.
For now, the technicals are siding with a move lower but we may very well have to wait until Powell for any material action.
