Markets are in consolidation mode so far Monday morning as EUR/USD trades quietly in the mid-1.4920s. Traders remain reluctant to take on the 1.5000 area without a fresh dollar-negative catalyst, mindful of heavy options protection ahead of exotic triggers up there. By the same token, they are in no rush to sell given buying from an Asian regional central bank earlier in the session.

It was interesting to note that China was pretty critical of the euro in today’s People’s Daily article just as EU officials prepare to make a pilgrimage to Beijing to appeal to the PRC to loosen its grip on the USD peg which has held the Yuan steady around the 6.83 level for the last 15 months or more.

1.4870 is support on pullbacks near-term for EUR/USD while 1.4955/70 is resistance.