Unlike other dollar pairs which might be being pushed to the brink, EUR/USD is in a bit of a bend but don't break situation. After the rejection at 1.1000, the pair has been largely consolidating around 1.0700 to 1.0800 since the start of last week before finally breaking out of that funk to trend lower again now.
That said, there isn't any major breakdown in technical levels with the pair still largely caught between key resistance at 1.1000 and key support closer to 1.0500 at the moment.
As such, even with a stronger dollar amid a more hawkish Fed repricing and higher bond yields, the euro isn't in such a bad spot - all things considered.
If anything else, this looks to be just a nudge to the downside as the pair looks to consolidate lower before potentially meeting the key support region near 1.0500.
I mean, the euro itself does have some things going for it. Even with the mixed communique from Lagarde and some uncertainty over what might happen after March, the fact that core inflation in the euro area remains on the high side will provide flexibility for policymakers to argue for more rate hikes down the road.
That is enough to keep traders somewhat satisfied but on a day like this, of course it isn't enough to tide against the broader market theme.
