Sentiment has shifted to mildly bearish on the EUR/USD but I don’t expect to see a major collapse and further range trading, albeit with a bearish bias, is the most likely outcome in my opinion. USD sentiment is positive but with the SNB still supporting EUR/CHF and with EUR/JPY also on the rise, there are conflicting forces at play.
There were reports in NY on Friday that heavy sell orders were building between 1.3255/80 and I would use this as my first topside level. There is trendline support coming in around 1.3150 and little of technical note below there until the well watched 55-day MA at 1.3070.
