EUR/USD trading sideways as predicted until we unwind the oversold conditions. Friday we did edge a little higher beating 1.2957/62 to stop just 6 pips from our next target of 1.2986/96. Be aware that this area could hold a rally again today but shorts here need stops above 1.3015 for a move towards 1.3040. Any further gains this week should target 1.3080/85 for a selling opportunity.
We are now just dipping back to the 1.2957/62 level & if we continue lower as seems likely look for a test of support at 1.2915/10. A bounce from here is expected this morning but we could use a stop at 1.2890 as if we continue lower we could retest our buying opportunity & key support at last week's low of 1.2870/60. Our longs need stops below 1.2840 this week. We then look for 1.2795/85. Any further losses this week likely to test important support at last year's low of 1.2755/45.