It’s December so I’m still wary of a sharp move in this pair but I have no idea which way. The EUR should remain heavy on the crosses and if US rates keep going higher, then the path of least resistance in the short-term for the EUR/USD would seem to be down. The flip side is that the market may already be short and as markets get less liquid over the next 10 days, that might set off some panicky short-covering.

I’m in favour of some wide range trading between 1.3100/1.3350 over the next week and the short-term charts suggest to me a session range of 1.3200/60 with a neutral bias.