Euro Fails to Break Through 1.1420 as Dollar Softness Dominates

The euro's attempt to break through the 1.1420 level ended in failure on Monday, as the currency slipped back below 1.1400 after a bullish gap at the open.

This move was largely driven by dollar softness, with the US Dollar Index easing toward 101.19 and Brent crude falling more than 6% to around $87 a barrel.

Despite cheaper oil being a clean euro positive due to the eurozone's reliance on imported energy, the market barely cared, and the pair remained capped below the mid-July high near 1.1480.

The structural read is that the euro is not being sold, but rather failing to be bought, with the pair stuck at 1.14 after weakening modestly over the past month.