EUR/USD stays in consolidation mode so far this week
The pair is holding a little lower on the day amid a slightly firmer dollar but continues to tread water between key technical levels.
The key trendline resistance from the January and February highs, seen @ 1.2113 currently, is still limiting any further upside momentum since last week while the 100-day moving average (red line) @ 1.2056 now turns into key support for the pair.
Adding to that is some near-term support from the 100-hour moving average @ 1.2067, in which sellers tried to hold below earlier but failed. Adding to further near-term support will be the 200-hour moving average @ 1.2042, so those are key levels to watch.
Essentially, traders are waiting for firmer direction and are hoping that the reaction to the Fed later today might provide some catalyst for a clear break.
Treasury yields have been keeping higher in the past two days and that has helped ease pressure on the greenback but the coast isn’t quite clear yet.
We’ll have to see what the Fed has to offer later in the day to be more certain.