Technically speaking, “A daily descendant trend line coming from 1.3170 highs lies today around 1.2980, acting now as limit for current bearish tone, as only above that level the pair may continue advancing,” explains Valeria Bednarik, Chief Analyst at FXstreet.com. “Bigger time frames are also looking bearish at the time being, although a break below 1.2880 is now needed to confirm more slides this Tuesday.”
If EUR/USD does slip below mentioned support, bids may likely be found at the 200-day EMA (1.2854), while the 100-hour EMA at 1.2973 is level to overcome for upside rallies.
Regional equities are likely to trade with a negative tone tracking weakness in stocks on Wall Street. At the time of writing, Japan 225 is quoted down 25.79 points, or 0.28% at 9043.50, while S&P/ASX 200 is trading 14.07 lower, or 0.32% at 4371.40.