With no new drivers EURUSD is trapped in its 1.1260/1.1360 range. Above the 1.13 treshold the pair starts to look bullish whereas spot rates below 1.13 mislead to a bearish sentiment. That is tiring in the long run of course. Ahead of the central bank meetings last week I was convinced of a sustainable break of the range but the market disappointed at first.
With thinning liquidity in mind there is still some room for more action. The Dollar-Index is working on a consolidation formation since the 24nov between the 96.95 resistance and the 95.55 support. As the general bias of the Dollar is bid I still expect a final (?) leg higher to the mar20 high (97.80).
Such a Dollar spike could drag down Euro to around 1.1130/20 eventually. The short-term short scenario is really over above 1.1380/1.1400 resistance. Euro longs do not want to see a daily close below the 1.1220 level.
Good luck,
Sebbo