The pair is back up above 1.2200 but is still looking for direction
EUR/USD had a bit of a see-saw ride yesterday, trading near 1.2200 after jawboning by ECB officials followed by a jump up close to 1.2300 on the back of dollar weakness and then ending the day at the lows below 1.2200.
The pair traded to a low of 1.2165 today at the start of the trading day, but it looks like buyers have found support at the 38.2 retracement level on the hourly chart to lean on.
It has since bounced back up to 1.2206 now, but remains capped as a break of the 100-hour MA which sits at 1.2221 is yet to be seen. Buyers need to get back above that to regain control, and that could be what it takes to send the pair up for another test of the highs near 1.2323.
But at the moment, the pair remains sidelined. We'll have ECB Weidmann and Coeure due to speak later at 0800 GMT - so look out for that as a possible risk event for the euro.
Meanwhile, EUR/GBP continues to play ping pong between the 50.0 retracement level and the 100-day MA. Still no fresh impetus for either buyers or sellers to break out of the range it seems. It is a similar one which I talked about last week here.
