EUR overview: Play 1.2755/1.2980 range
EUR/USD looks heavy to me and I expect to see a test of low 1.28s before Thursday. That said, EUR/GBP is near important support levels and both EUR/JPY and EUR/CHF have also retraced after decent gains and look to be better ‘buy-dip’ propositions. In other words I expect any EUR/USD falls to be less than falls in AUD/USD, cable etc. (Prime brokers report that EUR shorts are still at significant levels and one of the better-connected PBs expects to see 1.36 in EUR/USD in coming months).
The double-top on the 4-hr chart suggests to me that strong technical support at 1.2755 will be tested over coming days. Resistance levels start at the short-term bearish trendline near 1.2980. I’m playing this range with a distinct bearish bias.