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Forex pairs in this Article » EUR/USD (Barcelona) - The EUR/USD drifted down to just above dual Fibonacci support at 1.3476 before bouncing in the middle of the US session. Some of that initial bounce was given back by the end of Monday’s session, however.

European and US data to drive the action Tuesday - hopefully

Traders absorbed mixed economic data from Europe and the US Monday and basically deferred to the technical set-up - which called for a move down to support at 1.3476.

The EUR/USD trading crowd would love to focus primarily on economic data flow and not so much on negative Washington politics. So, barring any resolution or deterioration in D.C., traders will be focused on German Business Climate, Current Assessment and Expectations as well as US home price indices, Consumer Sentiment and multiple “Fed Head” speeches on Tuesday.

Technical outlook for EUR/USD

Technicians say the EUR/USD may have bottomed short-term at Monday’s low just above 1.3476. That level represents “correction support” and the 38.2% retrace of the /17 – 9/19 rally. Longer-term, they say the cross may end up at around 1.3620 – 1.3640 before the current upside move runs its course. They say dips to 1.3476 – if they occur – can be bought.
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