EUR/USD: 1.3350There is nothing to add to the weekend report, with the Euro unchanged given that is has been a US holiday and it looks likely to stay that way, at least until the German ZEW Economic Sentiment Survey later today. The focus of the market will then turn to the risk of an indecisive outcome in Italy's election at the weekend, which adds to the concerns about the Euro and will limit the upside.
Technically, the dailies still look a bit heavy and an eventual test of 1.3250 still looks probable. In the meantime, the 4 hour charts are showing some mild bullish divergence and in the short term it would not surprise to see the short term Fibo support at 1.3315 (23.6% of 1.2042/1.3710) hold, for a mild short term bounce towards 1.3400 and perhaps 1.3440 before another attempt at the downside.
A slow drift to slightly higher ground looks most likely today before the downtrend towards 1.3300 and possibly 1.3250 continues and a range of 1.3320/1.3420 may well cover it.
Economic data highlights will include:
T: German/EU ZEW Economic Sentiment Survey.
