EURUSD – Weak demand keeps sentiment Bearish; Targeting 1.2993

The setback from last week's high in EURUSD ended yesterday with demand seen near 1.3000. Net gains were modest however with the highs not maintained and this weakness of demand was further highlighted by momentum that is less positive. This price action does not provide strong signals for sentiment but the intraday tone is assessed as negative. In view of this our call is Cautiously Bearish below 1.3098. The immediate objective is 1.3034 and a move through that point should see the market focusing on 1.3013, yesterday's low, and 1.2993.

The risk is that selling pressure is being overrated and this would be confirmed by a move up through 1.3098. Further gains would then target 1.3119, last Thursday’s open, or even last week's 1.3139 top.