EUR/USD - Starts week in Narrow Consolidation

Consolidation: Following up with last week's bearish swing, the EUR/USD is starting this week so far very quietly, settling in a range roughly between 1.2880 and 1.2950.

Breakout scenarios: If there is a break above 1.2950, there is likely a corrective rally toward 1.30. 1.30 will be a key resistance to monitor. Holding under 1.30 keeps a bearish bias. Above 1.3050 however, we are likely returning to the bullish outlook.

To the downside, a break below 1.2880 exposes the next support factors near 1.2838, 61.8% retracement of the Nov-Dec rally. Price will also test a rising trendline there. A break below 1.2830 and a rising trendline then opens up further bearish outlook.