EUR/USD inter-markets: door open to… 1.0820?

EUR/USD failed to gather further steam after the ECB meeting today, briefly testing the 1.1060 area – or session highs – in response to the usual volatility during Draghi’s press conference. It is now threatening to break below the psychological support at 1.1000 the figure following a pick up in the demand for the US dollar.

On the other side, the greenback –tracked by the USD index – has sparked a rebound after bottoming out in the 96.80 area along with a positive performance of US yields, giving further evidence that the rally remains healthy for the time being.

Despite volatility gauged by VIX is testing session tops, this is so far not reflected in the evolution of EUR, adding to the idea that USD-dynamics remain a pivotal driver behind the current EUR/USD’s price action.

Below 1.10 we find yesterday’s low at 1.0979, prior to 1.0913, post-‘Brexit’ trough and ahead of the key support area at 1.0820, March’s lows.