Technical Analysis

EUR/USD keeps more choppy just above 1.1200 for now

The pair is struggling for firmer direction in trading today

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The pair is still trading narrowly within a 25 pips range today, with the low touching 1.1205 earlier before moving to around 1.1230 in the past hour.

Despite US futures keeping softer with S&P 500 futures down 0.6% and Dow futures down 0.8%, major currencies aren’t too affected besides some slight strength in the yen.

The dollar side of the equation remains more mixed for the most part thus far.

For EUR/USD, sellers continue to keep near-term control but are struggling to go in search of a firmer break under 1.1200. They managed to tread waters under the figure level briefly in trading yesterday, but were unable to hold a break into the close.

As for today, there are large expiries also seen at the level and that may be a factor to keep price action more limited around the 1.1200 handle for now.

But if anything else, it is also telling that the market is still struggling for direction in general over the past two days. US stocks were also seen struggling yesterday initially but ended up trading higher and that is leaving investors with little to go on.

Looking ahead, we can expect more pessimistic coronavirus headlines coming out from the US later today and the key question will be is it enough to finally put a more meaningful drag on the market? Or will dip buyers step in to keep price action more contained?

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