That's a modest turnaround on the session as buyers push back above 1.1300. Of note, they have also breached the key hourly moving averages @ 1.1296-00. That sees the near-term bias shift back in favour of buyers for now.
The chart above may seem like buyers are making a play but there are still resistance layers to work through. And from a fundamental perspective (perhaps the more important one this week), we still have the Fed and the ECB coming up.
The possibility of a divergence between the two central banks may very well still hinder buyers despite the latest setup here. That being a more hawkish Fed and a dovish take by the ECB. The former may look to speed up tapering and set out at least three rate hikes in the dot plots. Meanwhile, the latter could introduce a temporary bond purchase boost post-PEPP.
As such, EUR/USD may face stiffer resistance in the run up to the central bank meetings for now. That can be defined and limited by the swing region resistance around 1.1320 and then 1.1340-50.
Given the predicament above, upside is likely to stay limited before we get to the Fed. Thereafter, we'll see how dollar sentiment plays out and digest that alongside the ECB on Thursday.
