There are just a few to take note of on the day, as highlighted in bold below.
The first being for EUR/USD at the 1.1650 level. The expiries don’t tie to any technical significance and may not feature much into play. That especially if the trading mood in Europe today follows the same theme as it has been in previous days. Markets are gripped by the US-Iran conflict and headline risk is the key thing that is driving trading sentiment at the moment.
The dollar has been a little firmer in the past few sessions but not really pushing gains all too much as the risk mood holds steadier today. That after the retreat in US trading, with yet another day of stalled plans for negotiations between the US and Iran.
In the case of EUR/USD, the pair is also continuing to keep around the 200-day moving average at 1.1674 and that is the bigger technical level in play currently. Buyers are holding the line so as to not give up technical control to sellers but the pressure is definitely building as the US-Iran conflict drags on.
That is the more important level to watch for EUR/USD in the day ahead.
Besides that, there is one for USD/JPY at the 160.00 mark. However, I don’t see that as being all too impactful as it’s a psychological game mostly now for the currency pair. Tokyo has been rather vocal in warning about intervention risks this week, wanting to draw a line before a break of the figure level. So, that is likely to keep price action under wraps unless there is a major negative headline to hit from the US-Iran conflict. In turn, that will drive the dollar up and yen down on the reaction.
As such, the headline risk potential is the bigger driver of trading sentiment and price action at this point
