We would again expect the Dollar story to dominate today. Some soft US existing home sales data is probably the best chance of EUR/USD breaking 1.0960/1.0965 resistance and testing 1.10. But without short-dated US yields starting to break substantially lower – e.g., US two-year Treasury yields remain at 4.90% – we would be reluctant to chase EUR/USD too much above 1.10. 

Equally, another poor set of European PMI readings on Thursday could again pull the rug from under the Euro.