So far, it has been a solid day for the USD. Gains against the Euro, Swiss franc, and Aussie have defined the session and given participants some food for thought. The March meeting of the U.S. Federal Reserve (FED) is just under two weeks out — are investors anticipating the kickoff of 2018’s promised rate hikes? It appears the answer is a definitive yes.

The EUR/USD has taken a pounding today after the European Central Bank (ECB) decided to hold interest rates steady at -0.4%. Even though the move was expected, the dovish tone has prompted bears to take an interest in the EUR/USD.

EUR/USD Technicals

At press time, the EUR/USD is trading just below an area of downside support. The intraday trend is down and today’s close will be important to near-term pricing.

So far, the 1.2300 handle has held up as support. If price closes above 1.2300 for the session, rotation back toward 1.2350 is a possibility by the end of the week.

Here are a few levels to watch:

• Resistance(1): Bollinger MP, 1.2320
• Resistance(2): Daily SMA, 1.2340
• Support(1): Psyche Level, 1.2300

Overview: Sentiment has been definitively negative following the ECB actions during the overnight. Until we receive confirmation of the move being exhausted, I will be on the sidelines.

Tomorrow’s U.S. Nonfarm Payrolls (Feb.) will bring more action to this market. If the numbers are strong, the EUR/USD may be primed to enter a bearish trend for the intermediate term.