Being under permanent pressure on most of its frontlines (inflation, Greeks, unemployment, low growth), the US dollar is adding to its weakness even more with rate-hike seen to come this year.
Nevertheless, markets seem to like the quantitative easing monetary policy tool, albeit it depreciates the euro-bloc's currency, as the European Central Bank (ECB) had to show more to fight deflationary pressures. We will see ECB meeting minutes released on Thursday from March meeting, expected to be dovish according to the statement and currenct goals.
Euro area is already sufferring from Greek issue, attracting too much attention due to the discussion about Grexit from the eurozone, hurting the confidence toward the monetary union.
Today we will have full-data session, but from the essential we can pick only US ADP employment data, still having marginal impact compared to Friday's non-farm payrolls data (NFP), so the relevant movers will come tomorrow (ECB minutes if any non-dovish stance) or Friday's NFP. The rest of the data provides mostly only mild short-term volatility.
As for technicals:
Major TP remains at $1.0491, with mild $1,0656 before, if euro drops below support of $1.0729.
As for short-term correction, we expect bullish EUR/USD positions to be closed successfully at $1.0889, or $1.10.
