EUR/USD has been trying to build a base for a rally this week but appetites are limited above the 1.3000 level. Hopes that the EU is getting its house in order to protect its own (Ireland, Greece, etc) has helped defuse some of the fears of a messy divorce by one or more eurozone members. By the same token, lousy eurozone data and an ECB that seems to understate the severity of the crisis it faces. This leaves in a relative stalemate, price-wise. What does the market do in these cases? Look for greener pastures. None has been greener than USD/JPY the last two weeks, so focus is rightly on that pair which now is in consolidation mode.
Near-term, support for EUR/USD is at the 1.2700/05 level while resistance is at 1.2830/40. We trade now at 1.2787.