EUR/USD - Rejected at 1-hour 50-MA, reverts to ground zero

The rebound from the post-Coeure low of 1.1993 ran out of steam above the 1-hour 50-MA hurdle. The EUR/USD has surrendered the marginal gains to trade largely unchanged on the day around 1.2013. 

Will it drop below 1.20?

A correction looks overdue if we take into account the fact that the open interest in the Puts spiked on the CME. Thus, the spot could very well below the post-Coeure low of 1.1993. 

CME also shows the 1.19 Put option has the highest build up of open positions.  The open position build up are also seen in 1.18 Put, 1.1750 Put, 1.17 put and 1.16 Put. 

On the higher side, 1.2250 Call has the highest build up of open positions. A break higher would force call writers to unwind their shorts, leading to a big rise in the spot. 

The data docket is empty, hence the spot is at the mercy of the broader market sentiment the USD price dynamics. 

EUR/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik writes, "the EUR/USD pair trades around 1.2020 after London's opening, biased higher according to short term technical readings, as in the 4 hours chart, the pair bounced from a bullish 20 SMA, whilst technical indicators are resuming their advances after finishing their correction from overbought levels well above their mid-lines. The same chart shows some intraday highs in the 1.2030/40 region, being then, the immediate resistance ahead of 1.2070. Beyond this last, the next relevant level comes at 1.2101, January 2015 monthly high, although seems unlikely that the pair can advance that much in such a quiet environment. Below 1.1980 on the other hand, a downward corrective movement can develop down to 1.1950, while below this last, the next support comes at 1.1910."