More range trading is likely for the session ahead, with the EUR still looking a better sell on minor rallies as Eurozone-US short-term spreads edge a little wider again.

Spot trends look flat on the short-term chart, with the EUR capped in the low 1.0900 area but well-supported near 1.0850 (200-DMA at 1.0848). The technical undertone for the EUR remains soft, however, with the EUR holding last week’s break of bull trend support (now resistance) at 1.0955/1.0960.

More corrective losses in the EUR – to unwind a bit more of the Q4 USD sell-off – look likely in the next few weeks.

A daily close under 1.0875 targets a push back to 1.0700/1.0800.