After bouncing on Friday, the EUR/USD has consolidated in a relatively tight range below the 1.2800 round handle thus far this week. As anticipated last week, the recent G8 meeting did not lead to any substantial changes for the market, and traders remain on edge with periphery debt yields still in focus. Technically, the pair is capped by resistance at the Monthly S2 pivot (1.2820) and may turn lower off this ceiling. On the other hand, a break above this level would suggest the EUR/USD may have further to squeeze, with the next resistance level up near the round 1.30 handle.