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Divergence greets inertia as EUR/USD remains in tight range

Yesterday the lack of traction in the EUR/USD was once again highlighted here. So, despite a disappointing US Service sector ISM report, the Euro could not really advance. I explained yesterday afternoon, that this was surely due to the proximity of the ECB policy decision tomorrow. However, we have other reasons for this and that covers the US monthly jobs report on Friday and Jerome Powell testimony later today. Meantime, the EUR/USD failed to set a daily close above its 50 day moving average yesterday. That is still falling and in place today at 1.0860. The EUR/USD closed last night at 1.0857. At the same time, conversely the 200 day moving average is now rising and in place right now at 1.0832. So, as you can see we have divergence there and that also defines the constrained price action. Eventually, it will break and deliver a more dynamic move, but few Euro traders seem willing to yet bet on which way that will be. The EUR/USD is currently trading at 1.0860 

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