FXstreet.com (Barcelona) - The issue to keep an eye on early this week, according to Marc Chandler. Head of Currency Strategy at BBH, "is whether recent price action represents a correction to the recent trend, a reversal or the start of a new trend."

Marc adds: "After reviewing the technical conditions, we continue to conclude the price action is corrective in nature, but the price action, especially in the second half of the week, warns that the correction may be extended in the coming days."

When looking at EUR/USD in particular, "the poor close before the weekend, which includes two successive closes below the 20-day moving average for the first time in three months, indicates additional near-term losses are likely" he says.

Marc suspects that "a break of $1.3350 - held on Friday - could spur a move toward $1.3220-$1.3270 as trend line support and retracement objectives are cluttered in that area." However, he recognizes that "a convincing break of $1.32 exposes another two cent slide." Only above $1.3400-50 "would improve the technical tone and suggest the correction is over" he concludes.