Dollar Bounce Puts EUR/USD on Notice Ahead of Jackson Hole

The EUR/USD pair has been experiencing a corrective move off its four-day high at 1.1711, reaching 1.1654 against the dollar on Tuesday.

This move is significant because it's not driven by any inherent strength in the euro, but rather by a collapse of the US dollar.

The pair slipped 0.09% on the session and refused to reclaim 1.1700 through the New York open, with the rejection mattering more than the size of the pullback.

The context underneath is constructive, as the euro has gained 2.51% over the past month and against the same date twelve months ago, the pair sits up just 0.14%, indicating a round trip for the entire move.