For the past few weeks, EUR/USD has traded a wide range around the 1.2900 figure, and slipped into an even tighter range on Friday, notes Sean Lee, founder of FXWW; “Look for continued range trading inside a 1.2825/1.3080 range” Mr. Lee comments in a research note. “EUR shorts have been on the increase again but if bearish momentum doesn’t pick up soon, the prospect of a short-covering rally becomes real again.”
The 200-day EMA (1.2863) continues to offer EUR/USD support, while a 38.2% Fibonacci retracement level at 1.3145 is the level to overcome for upside extensions. Ahead of there, offers may be located at 1.3070 (Oct 5 high), and the mentioned 1.2900 figure is now immediate support, while, below the 200MA lies support at 1.2825 (May 21 high).
EUR/USD last trades at 1.2950.