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EUR/USD rebound avoids a technically negative close

On Thursday last week the ECB (European Central Bank) surprised very few pundits when they decided to keep all aspects of current monetary policy on hold. That saw the EUR/USD drop back to a new 2024 low at 1.0813 by early on Friday morning. A rebound followed into US opening, when it peaked at 1.0885. However, it was unable to hold all that rebound into the weekly close on Friday, when ending the week at 1.0853. On the plus side, that close also meant the Euro managed to avoid a daily and weekly close below its 200 day moving average, in place then at 1.0844. Overnight the EUR/USD traded in a rather inconclusive and tight range, covered by 1.0839 to 1.0858. It is currently trading around that 200 day moving average, just now at 1.0844 as it awaits to see what the Federal Reserve has in store later this week. It is also worth noting that today is spot month end and that does open up the prospect of month-end re-balancing in terms of both the dollar and the Euro 

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