- Price remains in range between 1.1310 and 1.1360.
- Greenback strengthened across the board but advanced more modestly against European currencies.
The EUR/USD pair dropped to 1.1309, just below the lows of the previous two days and quickly rebounded, erasing losses. The pair continues to move sideways around 1.1330, in a tight range.
The DXY during the American session rose from 96.83 to the 97.20 area but failed to break higher and pulled back to 97.050, where it closed yesterday. The US dollar is being the primary driver of EUR/USD.
Market participants continue to focus on the Italian budget drama and Brexit negotiations and the debate in the House of Commons. In the US, Wall Street is closed today. Key economic data is due tomorrow and on Friday in the US with particular relevance on the labor market number.
EUR/USD Levels to watch
Technical indicators show no clear signals in the short-term, as the pair continues to move sideways. Low volume is expected for the rest of the session that should contribute to keep the price in the 1.1310-1.1360 range.
In the short-term, if the euro rises above 1.1360 it would gain momentum for an extension for a potential test of 1.1400. The critical level to watch continues to be 1.1420 that capped the upside yesterday and also last week. Above 1.1420 the technical outlook would favor more gains. A firm slide below 1.1310, would clear the way for a test o f1.1300. Below that level, support is seen at 1.1275 and 1.1260.
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