EUR/USD: 1.3030There is nothing really to add to the Euro from yesterdays update in what has been a pretty tight session.
Technically, we are where we were yesterday, and having moved a little higher the Euro ran into sellers at 1.3070, from where it has retreated again towards 1.3000
If we can break 1.3070 we should head back to 1.3100 and then towards Friday’s high at 1.3133. The momentum indicators though, are flat, and for the time being a neutral stance is required and I would not be too involved, but continue to use the channel parameters as a medium term guide,(1.2775/1.3090)
On the downside, 1.3000 will continue to act as a short term pivot ahead of yesterday's low at 1.2980 and then Fridays base at 1.2955. I would be doubtful of going below this today, but further out, the weeklies continue to point south and eventually the downside should resume. Back below 1.2955 would lean towards 1.2915 (76.4% Fibo support of 1.2660/1.3710). If we trade below this, 1.2875 (50% of 1.2042/1.3710) lies ahead of the H/S objective at 1.2840, which in turn, is backed up by the 200 DMA at 1.2838, so the support in the 1.2840/75 area is going to be strong and would suggest a good area to buy back some shorts. The base of the descending channel is now at 1.2800 which could take a while, if at all.
Economic data highlights will include:
EU Industrial Production, US Retail Sales
