EUR/USD upside faltered around 1.3280

FXstreet.com (Edinburgh) -The EUR rally is giving signs of exhaustion in the vicinity of 1.3280 on Monday, with the EUR/USD giving away some gains to the area of 1.3260/65.

EUR/USD in 2-week highs

The pair keeps the upbeat tone since the very beginning of the trading session, fuelled by positive Chinese trade data over the weekend and 2-year highs from EMU’s Investors’ Confidence gauged by the Sentix index. According to the last CFTC COT report, Strategist Jane Foley at Rabobank commented, “Speculators maintained long EUR positions for the fifth consecutive week, though the size of the EUR positions were almost halved… USD longs eased slightly, essentially consolidating. We expect our structurally bullish USD view to be reflected by market positioning into year end and 2014”.

EUR/USD key levels

At the moment the pair is gaining 0.64% at 1.3264 with the next resistance at 1.3279 (Kijun Line) ahead of 1.3298 (low Aug.22) and then 1.3322 (low Aug.27). On the downside, a break below 1.3157 (low Sep.9) would target 1.3104 (50% of 1.2755-1.3453) en route to 1.3089 (low Jul.19).