"Italy must 'calm down' and stop questioning the euro: Draghi" ~ Reuters
Last week we learned that Italian yields was what halted the euro from moving higher, technically. As these issues continues to brew within the eurozone, observing the negative correlation of these two pairs is worth noting. Italian yields isn't far from 4%. Whichever way the pair goes, a new low for the euro will be supported near 1.1375 area.
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A closer look at EURUSD update: Weaker data from U.S. yesterday pushed the euro up to 1.1600 thus breaking above the trend line. Here we are seeing EURUSD consolidating for what appears to be a bullish flag pattern. The divergence on the MACD suggests another leg up which should complete a corrective move of WXY.
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Today's rally on EURUSD was capped at the 200 period moving average. With CPI data to be released tomorrow, that may be the catalyst that will send the euro lower, or higher. We'll just have to wait.