$1.1300 Marker Holds In EUR/USD

EUR/USD bulls forced a test of $1.1300 in early Asia-Pac trade, although the level held firm, with desks flagging good selling interest at the figure, limiting broader weakness in the DXY in the process. Note that the defence of the level has allowed the BBDXY’s Monday base to hold. Friday & Monday’s highs in the cross ($1.1331 & $1.1320 respectively) remain out of reach as a result. Beyond those recent daily highs, more meaningful resistance lies at the Nov 18 high ($1.1374) & the 20-day EMA. Still, our technical analyst flags a bearish outlook, with eyes on the Jul 1 ’20 low ($1.1185).

• Preliminary Eurozone CPI data for Nov headlines the European docket on Tuesday, with ECB rhetoric from Villeroy & de Cos due. Over the pond, the testimony from Fed Chair Powell (who’s pre-released initial remarks were on the cautious side in the wake of the Omicron COVID developments, facilitating the EUR/USD uptick to $1.1300) & Tsy Sec. Yellen will provide the focal point.