EUR/USD: Weekly preview July 7th
- This pair has been in range trading mode for an extended period and is currently sitting right on weekly trendline support (see chart).
- The market has turned irrationally bullish on the USD and with EUR/USD positioning at relatively low levels, there is still scope for further falls.
- July and August are the main holiday months in Europe and North America and we seldom see any big trends beginning at this time of the year.
The market wants to buy the USD and we must respect this sentiment but I don’t like the risk-reward in selling near 1.2800. Look to the EUR crosses for better trading opportunities.