I have not had a good handle on EUR/USD for a few weeks now so I’m leaving it well alone until some obvious trade hits me in the face. The overall outlook for the EUR is still cloudy in my view but the market is short so we can expect periods of short covering to emerge. With a base now looking to form just below 1.3300 and the market having managed to break back above the previously pivotal 1.3400-25 level, it would seem to me that the market might now slip back into the previous 1.3450/1.3750 consolidation range. The possible fly in this analytical ointment is that the break above 1.3425/50 happened early on a Monday morning in very thin markets and these breaks can often be unreliable and false so a bit more information is needed.