Both the EURUSD and GBPUSD are giving back earlier gains as broader market sentiment turns more cautious.
The EURUSD is still modestly higher on the day by 0.08%, while the GBPUSD has slipped back to unchanged levels after failing to sustain upside momentum
Meanwhile, crude oil has rebounded sharply back above $95 after earlier trading as low as $89.85, helping push U.S. yields higher, with the 2-year yield up 3.3 basis points and the 10-year yield up 2.8 basis points. Equity markets have also softened, with the Nasdaq now down -0.14% and the S&P 500 lower by -0.30%, as traders reassess the lack of meaningful follow-through positive headlines out of the Middle East. Technically, the EURUSD has rotated lower after stalling just below key resistance levels.
The pair reached a session high near 1.1778, falling short of last week’s high at 1.1785 and yesterday’s peak at 1.1795. The failure to extend higher has encouraged sellers, with the pair now testing an important swing level near 1.1754. A break below that support would shift attention toward the 100-hour moving average at 1.17257, followed by the 200-hour moving average at 1.1717 and the 100-day moving average at 1.1707.