EUR/USD eyes second daily drop as dollar regains some composure

After a run up against the 1.0800 level on Friday, EUR/USD is not finding much follow through to take another run at the key level. The 200-day moving average (blue line) also saw sellers step in, with price now falling to 1.0730 levels. This sets up a potential back-to-back daily drop for the pair for the first time in three weeks:

The nudge lower today also owes to the dollar regaining some composure after last week’s fall. The greenback is sitting higher in trading today, starting to stretch its muscles a bit now. Looking to the near-term chart:

The pair has also dropped below its 100-hour moving average (red line) in trading today. That sees the near-term bias now shift to being more neutral. It is a similar case for AUD/USD as outlined here. And that suggests that the dollar is finding some support this week from a broader perspective.

The 200-hour moving average (blue line) at 1.0726 currently will be one to watch for EUR/USD as such. Hold that and buyers are still in with a shout towards the end of the week. Break below and sellers will regain near-term control.

This article was written by Justin Low at www.forexlive.com.