It was a quick one at that, as EUR/USD backs away from the earlier high of 1.0695 to fall to 1.0655 on the day. The data doesn’t change the ECB’s plan for a move in June but it is perhaps a first step in keeping their options open after that. For now at least, traders are more focused on the next move.

And as mentioned earlier:

„Taking that into consideration, the euro bounce we’re seeing might not have much legs to it. But at least from the near-term chart above, EUR/USD is working above both its 100 and 200-hour moving averages again. That sees the near-term bias turn more bullish at least. But we’ll see if price can hold above the high last week at 1.0690 for the day. If that doesn’t last, I’m inclined to fade this move for a quick one.“

A good ol‘ fade the pop trade in the bag. Now, we’re back to square one on the day. And with price action continuing to consolidate in and around the key hourly moving averages, we’ll have to wait on the US PMI data to settle the score.

This article was written by Justin Low at www.forexlive.com.