EUR/USD: news from the battlefield
EUR/USD is consolidating below $1.2950 on Monday following the Friday’s spike to $1.3000. Euro is showing some short-term strength despite the low market volatility. ECB’s Asmussen made some hawkish comments today, mentioning that low interest rates can lead to new risks if they stay low too long. Note that the US markets are closed in the observance of the Memorial Day.
We still recommend selling EUR/USD on rallies. Net EUR shorts keep growing. Friday’s failure to overcome $1.3000 shows that bulls don’t have enough power to reverse the pair up. We would change our bearish view above the $1.3200 resistance.
Offers are clustered at $1.2950 (38.2% Fibo) and at $1.2980/1.3000 (50% Fibo, top of the daily Ichimoku), while bids are seen at $1.2910/00 and $1.2890/80. Sell stops lie in the $1.2820/00 area.
Chart. H4 EUR/USD