EURUSD broke the 200-hour moving average since our last update. Now the price is pulling back to 1.1840 support. If EURUSD is able to stay above the 1.1840 support and 200-hour moving average, bullish pressures may continue for this week. 1.1920 can be the first and 1.1980-1.20 can be the second target for upward moves depending on ongoing data throughout the week. Below 1.1840 closes, however, can be negative for the EURUSD.
Correlation between 30 and 5-year bond spread with dollar index almost reach the negative maximum. It will be important to watch the spread more closely for the EURUSD movement in the coming weeks.
The options market is favoring EURUSD bulls this week. 1-week risk reversals turn positive later last week. But inflation data may cause some concerns until tomorrow.
