EURUSD's weak reaction confirms demand, targets 1.2668

Against a background of bullish EURUSD signals for this week, Monday instead attracted profit-taking. The upside failed near 1.2700 and saw a sharp reaction to Friday’s powerful gains yesterday but even losses of 1 big figure were not deep enough to reverse half of Friday’s upside. With some buying interest being renewed in Asia, intraday signals are mildly positive and so in view of this our call is Cautiously Bullish above 1.2552.

The immediate objective is 1.2629, yesterday's European afternoon high, with a move beyond that point targeting 1.2668 or even 1.2693, Friday’s peak.

The risk to this call is a move under 1.2552, half of Friday’s net gains,  indicating that the downside is likely to extend further than previously assessed targeting 1.2499, a broader 75%, or even Friday’s  1.2444 open.