I’m starting to get the feeling that EUR/USD isn’t as healthy as it seems. Another Fed taper and expectations of action from the ECB might be enough to send the pair lower later this week.
Technically, a series of lower highs and lower lows since year-end is an early negative signal along with the inability to take 1.3700. I’d like to see a break of the 55dma at today’s low or a fall below 1.3600 before selling but I could see an argument for selling here with a stop at 1.3700.
Otherwise, markets have been subdued as we enter the pre-Fed quiet period. USD/JPY has moved comfortably away from 102.00 but is reluctant to rise above 103.
