EUR/USD is a little lower today but stays above the 200-day moving average
The dollar is keeping firmer across the boar to kick start the new week but the technical levels still hint that dollar bulls have more work to do. In the case of EUR/USD, the downside today reached 1.1069 and that tested the 200-day MA (blue line) @ 1.1080.
But for now, price action is keeping above that near 1.1100 as buyers in the pair are still defending the level alongside the 100-day MA (red line) just below @ 1.1049.
Those will be the key levels to watch in case we do see a return back to the downside and a shift in the bias in the pair in favour of the dollar this week.
In terms of fundamentals, the unwinding in dollar funding pressures were largely the reason why the greenback softened in trading last week. But amid ongoing and persistent economic worries, it is still very tough to say if the correction will run deeper still.
But again, the technical levels will provide some help in that regard. And for the case of EUR/USD, any potential downside break can be defined by the levels above.
Meanwhile, topside momentum is capped by the 61.8 retracement level @ 1.1167 for now.
In short, the tug of war to start the week continues as we go in search for a clearer break in trading direction in the pair.
