EUR/USD: Expect plenty of stop-loss orders below 1.2915; bear target 1.2755
Monday’s can often be a bit volatile as order boards are cleaned out before the weekend ensuring less liquidity, normally until well into the US session. As last week’s Deutsche Bank research showed, this volatility has tended to result in heavy risk-off plays over the last 3 months.
Technical support is solid in EUR/USD near 1.2915/20 (https://www.tradingview.com/x/Q8w7rOwW/) but if/when that breaks, we should see moves lower towards 1.2855, 1.2815 and ultimately 1.2755. The double-top on the hourly chart is a dominating factor and until the bulls can re-take 1.3080 convincingly I will remain in the sell-rally camp. [Disclaimer: I’m short and therefore biased].