EUR/USD rose on Monday as the German and French leaders decided to agree on something in the future in order to recapitalize the EU banks. Yes, this is a bit far-stretch, and we think this pair is simply reacting to a short-covering rally of sorts. The 1.37 level holding as resistance does make us think the pair is going to fall easier than rise over the longer haul.
EUR/CHF fell as well. The very fact this pair fell shows us that there might be underlying weakness in the Euro, despite the rally on Monday. This pair isn't really able to be traded, but it is important to watch it for signs of Euro weakness.
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