The euro has been capped by the ECB's recent...>

EURO: The euro has been capped by the ECB's recent rhetoric which has sounded a

little more cautious re: inflation. EURUSD last trades at 1.2340, while EURGBP

trades a 0.8875 (at the whim of Brexit developments) & EURJPY trades are 131.20.

With a lack of tier-1 European data due this week, focus will fall on US CPI &

retail sales as well as comments from ECB's Draghi, Praet, Constancio, Coeure &

Villeroy, and any Brexit developments.

- EURUSD recently stalled on approach to the weekly bear channel top ($1.2639)

off 2008 highs. The closes below the 21-DMA saw focus return to the

$1.2092-1.2153 support region. Resistance layers left in the wake add to bearish

confidence. Bulls need a close above $1.2364 to gain breathing room and above

$1.2446 to reconfirm focus on $1.2555-1.2639 where 2018 highs and the LT bear

channel top are situated.

- For EURGBP immediate resistance comes in the form of the 200-DMA at 0.8892

200-dma, with notable resistance then seen at 0.8982/83, the Nov 28 high/1.0%

envelope 10-DMA. Support comes in at 0.8850 the 100-DMA