EUR/USD holds in a narrower range so far today but at 1.1980 levels now

The pair kept lower at the tail-end of Asia trading at 1.1970 but has now moved up again to close in on resistance from the mid-March highs close to 1.1990 as the dollar eases amid firmer risk sentiment to start European morning trade.

The resistance region at 1.1990-00 remains the key spot to watch since yesterday as buyers continue to keep near-term control in the pair.

A break above that will open up the path towards testing the 100-day moving average (red line) @ 1.2050 but if sellers hold, that could establish a short-term top after having seen said resistance region hold the upside momentum during mid-March.

All eyes today will be on US retail sales data though and while expectations are that we will see a strong reading (with the potential to see a strong beat on the already solid estimates), it still may not be the right tonic for yields to jolt higher.

After all, much like all the other stellar data releases in the past two weeks, it is still a bit too early to end the debate on the economic recovery/rebound and inflation.

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