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EUR/USD is trading up 0.2% to 1.1710
There was a whipsaw reaction to the Fed yesterday, where the pair climbed to a high of 1.1755 initially before falling back and even dropping below the 1.1700 level at the close.
But amid lighter trading so far today, buyers are able to push their way back above 1.1700 although the move isn’t amounting to much from a technical perspective.
Sellers are still keeping near-term control as price action holds below both key hourly moving averages, with the 100-hour moving average (red line) seen @ 1.1728.
However, I’d attribute the slight nudge higher today more to do with the large option expiries (€4.1 billion) seen at 1.1700 more than anything else.
That is arguably acting as more of a magnet for the pair currently with dollar sentiment not really extending or falling back after yesterday’s moves.
As such, EUR/USD may be caught in a bit of a bind close to the figure level until the expiries roll off later today. Just something to be wary about when viewing the pair now.
Beyond that, the pair has been stuck in a series of lower highs and lower lows since the start of the month (I wouldn’t count the whipsaw yesterday as being particularly meaningful in this regard, as it is what it is i.e. a whipsaw in reaction to the Fed).
That keeps the pressure towards the August low @ 1.1664 unless buyers are able to wrestle back near-term control and push back above the key hourly moving averages.