EUR/USD flat on the day, looks for fresh catalysts

The EUR/USD pair has been moving in a 30-pip channel on Monday, unable to determine a short-term direction after yesterday's sharp upsurge. At the moment, the pair is trading at 1.0735, sitting just a few pips below yesterday's closing level.

Today's macro data failed to provide any impetus for the Euro. The consumer prices in the 19-nation bloc rose to 0.8% in March on a monthly basis and stayed unchanged at 1.5% on a yearly basis. Other data revealed that the trade surplus increased to €19.2B, beating the consensus of €18.6B, but was largely ignored by the market participants.

The pair has been showing an inverse correlation with the US Dollar Index in the last two weeks, suggesting that the greenback has been the primary driver of the pair's price action. Ahead of this week's first round of French presidential election, the shared currency could remain as a non-factor on the pair's movements.

Investors' attention now turns to Fed's Beige Book due later today and Boston Fed's Rosengren's (2019 voter, hawkish) speech.

Technical outlook

With a decisive break above 1.0735 (daily high), the pair could aim for 1.0765 (Mar. 30 high) and 1.0800 (200-DMA/psychological level).  To the downside, supports are located at 1.0640 (100-DMA), 1.0600 (psychological level) and 1.0570 (Apr. 10 low).

• EUR/USD seen at 1.09 in 6-month – Danske Bank