EUR/USD rose again on Monday, but saw a sharp pullback from the 1.3950 area in the later hours of trading. It should be noted that the 1.30 level had served as resistance over the last few days, and it appears that the market is willing to fall back under that level. With the EU summit on Wednesday supposedly being the “final” answer to the crisis, the market may be getting ahead of itself at these levels, and judging by the recent track record of European leaders, a disappointment isn’t a real stretch of the imagination. However, with all of the risks to both directions, we feel that trading this pair is going to be very difficult to do until after the results of the summit are known.
Written by FX Empire