EUR/USD Technicals: 1.3080 pivotal for next directional move
The weekly chart is in a slow downtrend oscillating either side of the 100-week MA line. The daily chart has now formed a base and looks to have scope to retrace back towards 1.3500. There is a double-top on the short-term charts with a neckline at 1.3080 and this level becomes pivotal for the next directional move.
If we enter a full-on risk-off environment then the EUR is likely to outpace most other currencies, perhaps even the USD, as the market reverses out of its current short positioning. The lack of any catastrophic news re the EZ debt crisis is also fuelling the short-covering.
Range-trading is the most likely outcome here with important parameters at 1.2740/1.3500.