Resistance ahead of 1.3150 has proven very resilient and the deeper we pullback, the more the blls have to ponder whether we are stuck in a durable 1.2650/1.3150 range or are we just pausing before a fresh run up.
My suspicion is that we perpetuate the range with fiscal cliff woes and a potential shift by the ECB to negative rates on funds deposited with it factors that constrain the topside in EUR/USD.
Our first warning sign of a reversion to the range would be a close below the 10-day moving average at 1.2999 today.
