There is arguably just one to take note of on the day, as highlighted in bold below.
That being for EUR/USD at the 1.1500 level. It’s not one that ties much to any technical significance but could still help to keep a lid on any upside extension in price action for the session ahead. That as the dollar came back into favour yesterday after a more hawkish hold by the Fed and also as Middle East tensions continue to escalate.
That saw the risk mood pull back with Treasury yields shooting up, helping to underpin the dollar as well. In the case of EUR/USD, that sees price action more limited by the 200-hour moving average still at around 1.1534 currently. So, that is the bigger near-term ceiling level to watch out for.
But with the focus shifting towards the ECB policy decision in a few hours, there will be a slight breather from US-Iran headlines as Trump is also off (likely) for a bit during the session ahead. So, the expiries might just help to keep any upside extensions in check with the broader market focus staying on the dollar for now.
The euro side of the equation will be a factor when we get to the ECB decision and more specifically, when Lagarde delivers her press conference. She will be questioned on rate hikes and I would expect her to push back on that, reaffirming that they are not in a rush to make any sudden moves for now.
For more information on how to use this data, you may refer to this post here.
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This article was written by Justin Low at investinglive.com.
