The dollar ran riot in trading yesterday after the US CPI data, in which we saw a fall in EUR/USD from near 1.0180 all the way to below parity. In turn, we also saw a firm break below the 100 and 200-hour moving averages and that is keeping a more bearish near-term bias in the pair in trading today:
For the time being, the 200-hour moving average (blue line) at 0.9999 and large option expiries at 1.0000 itself are a key limiting factor to gains and that has been the case in the handover from Asia to Europe. Hence, parity is a key line in the sand in keeping the more bearish near-term bias going for the sessions ahead.
The pair is little changed now with the dollar keeping steadier but the big picture bias remains more bearish, with sellers likely to try and eye another run at 0.9900 and the September lows of 0.9864-75 again. Here is an overview of the pair at the moment: