This builds on yesterday’s action here: EUR/USD getting closer to a technical breakout?
EUR/USD daily chart
After having been in consolidation between 1.0900 to 1.1000 for the most part in the last two weeks, the pair might be looking to shake off that range this week. The drop today still sees the pair keep in between the above range, but it is notably pushing below the key trendline support (white line) at around 1.0923.
But personally, I’d pin a break below 1.0900 as one to really solidify any downside move at the moment. That will set up for a test of the 61.8 Fib retracement level at 1.0875 next.
The dollar is certainly moving from strength to strength to start the week, with higher bond yields helping the cause. Adding to that is the ongoing geopolitical developments in the Middle East as seen here. The mix of events is weighing on the mood in equities, with S&P 500 futures down 0.3% and that is also another reason underpinning the dollar today.