EUR/USD bounced from selling pressure as US yields eased, with the pair trading between key EMAs and 1.17 as the next breakout level.

The EURUSD pair fluctuated in its recent intraday movements, retreating under pressure from the firm key resistance level at 1.1660, as the pair attempts to gain positive momentum that could help it breach this resistance. At the same time, it is trying to ease some of its clear overbought conditions on the relative strength indicators, especially as negative signals have started to emerge from them. The pair found support at its EMA50, which provided some positive momentum that helped it rebound and create this state of volatility.

Brown Brothers Harriman’s Elias Haddad notes that resilient US growth and sticky PCE inflation keep the Dollar supported despite improved risk sentiment from progress on a US-Iran deal.

I’ve been arguing for years that the ‘dollar collapse’ thesis confuses inflation with debasement. Read more here.