We shall have to wait until later today or early tomorrow to get more accurate information on how the EUR/USD positioning situation has changed over the last week but overall sentiment and ‘noise’ remains relatively muted. After a significant technical break I would expect to be reading much more bullish commentary but the market does not seem to be overly convinced just yet.
There are two ways of seeing this of course but I am still of the view that the USD is going to have a very rough year and that the EUR/USD will find a higher plane to range trade on.
I’m happy to buy any 100-150 pip dips back onto the 1.21 handle, looking for a move towards 1.2550 by the end of February.
In shorter term, 1.2200-1.2325 should cover most eventualities.