EUR/USD: We can expect quite a few sessions of consolidation
The market got caught short in illiquid conditions and that will give the bears some food for thought in coming sessions. A daily close back above the previous 1.2350 support level would also weaken the bears argument. The bearish trend is strong but nothing moves in a straight line in the FX market.
If I were short, I’d certainly now be looking to buy dips back towards 1.2300. On the other hand if I were long, or looking to enter a short position, I’d be looking for rallies to 1.2550 to sell into.
That sounds to me like a good recipe for consolidative range trading over coming sessions and days