EUR/USD enters week overbought and due for a correction – but bullish overall

FXstreet.com (Barcelona) - The EUR/USD cross continues to sport an extremely bullish technical pattern – but is also sporting overbought readings.

EUR/USD traders ready themselves for Monday’s data

The EUR/USD just has not shown much willingness to correct lower after an extended upside move. Part of this has been bullish vibes out of Europe, but most has clearly been due to traders’ resignation of continued QE by the US FOMC.

Monday, traders will be monitoring the news from Europe and the US including: German Retail Sales; US Industrial Production and Capacity Utilization; US Pending Home Sales; and, the US Dallas Fed Manufacturing Survey.

Technical outlook for EUR/USD

The EUR/USD has surpassed the short-term upside target of 1.3750 and now really has no real resistance until the horizontal line resistance at around 1.3900. Support for the cross starts at Wednesday’s low of 1.3740 and is followed up by Monday’s low of 1.3650.

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EUR/JPY aims to retest 135 zone

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