The EUR/USD pair had a decent day on Monday, as we bounced back above the 1.29 handle. It now appears that the 1.29 area will offer significant support going forward, and as such we may have a tightening of the range in this currency market. Right now, we would have to say that the Euro looks favored at the moment, and with the FMOC meeting over the next couple of days, we could see softness in the US dollar in general. If there’s any talk of further quantitative easing, we could get a bit of a rally in this marketplace. As for selling, we need to see a sustained daily candle below the 1.2880 level in order to be convinced that we are moving back down to the 1.27 level.
Written by FX Empire