• EUR/USD is showing a sideways move around 1.0926 following the footprints of the USD Index.
• ECB policymakers are divided over the scale of the interest rate hike to be announced in May.
• The major currency pair has dropped below the upward-sloping trendline plotted from 1.0714.

The EUR/USD pair is displaying topsy-turvy moves in a narrow range around 1.0926 in the Asian session. The major currency pair is struggling to find a direction following the footprints of the sideways US Dollar Index (DXY).

S&P500 futures are showing nominal losses in Asia as investors are worried about the upcoming quarterly result season, portraying a minor decline in the risk appetite of the market participants. Investors are worried about any holes in banking quarterly reports after the collapse of United States regional banks.

The Euro has got inside the woods as European Central Bank (ECB) policymakers are divided over the pace of the policy-tightening spell to be adopted in May’s monetary policy meeting. ECB policymaker Martins Kazaks said on Monday, the central bank has the option of 25 basis points (bps) or 50 bps move in May.

On a two-hour scale, EUR/USD witnessed a steep fall after failing to sustain above the 161.8% Fibonacci Extension (placed from April 04 high at 1.0973 to April 10 low at 1.0837) at 1.1057. The major currency pair has dropped below the upward-sloping trendline plotted from March 24 low at 1.0714.

The 20-period Exponential Moving Average (EMA) at 1.0962 is acting as a barrier for the Euro bulls.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, advocating more weakness ahead.

A decisive break below April 12 low at 1.0915 will drag the asset towards April 10 low at 1.0837 and April 03 low at 1.0788.

On the flip side, a break above the psychological resistance of 1.1000 will drive the asset to a fresh annual high at 1.1068, followed by the round-level resistance at 1.1100.

EUR/USD two-hour chart