The EURUSD is having trouble finding direction.
I can say the same about the entire Forex market.
Direction and momentum are something many currency pairs are struggling with at the moment.
Everything from the EURUSD to the USDJPY is in a stalemate.
As for the euro, it pulled back rather aggressively last week against the US dollar, but has since recovered most of its losses.
The question now is whether or not the EURUSD can carve a higher high above 1.2266.
If it can, we could see a retest of the year-to-date high at 1.2350. We may even see a breakout above that for an extension to the ascending channel top near 1.2450.
And if the EURUSD can’t carve a higher high, last week’s pullback could become significant as it will represent weakness.
For that to materialize, I’d need to see prices extend below 1.2100.
That could open up the 1.2000 handle.
For now, though, the EURUSD needs more time to pick a direction.