EUR/USD’s immediate bias is neutral, with the exchange rate locked in the range of 1.2081-1.2149 defined by Friday’s low and Thursday’s high.
Friday’s low of 1.2081 is the level where sellers ran out of steam, allowing the bulls to push the pair back to levels above 1.21. Meanwhile, the bulls faced rejection at 1.2149 on Thursday.
As such, 1.2081 is the level to defend for the bulls, and 1.2149 is the level to protect for the sellers. A move below the former would imply a bearish breakdown and shift risk in favor of a drop toward 1.2050. On the other hand, a breakout above 1.2149 would open the doors for an extension of the previous week’s rally toward 1.2349 (Jan. 6 high).