Looking For New Direction

The US dollar showed a bit of strength at the end of last week. That strength continued into this morning's Tokyo session. We see a retracement at the start of the London session, but not much momentum associated with it. The general consensus of technicians is for further strength in the Euro with a target of 1.3500 by year's end. We will be cautious today looking to trade into market strength. Our indicators are currently neutral. We'll watch for a break above 1.3220 for a long on the EUR/USD pair.