Last week we posted the long term chart of the USD Index and showed that it has hit a critical support zone between 104/105. FX major price action seems to be backing our call for a push up in the USD. We spoke earlier today about how there are signs of a near term pullback in the AUDUSD and now we can see similar topping signs in the EURUSD. The pair has never felt comfortable above the 1.04818 high and we believe that the EURUSD is in a distribution phase. A break below 1.0500 strengthens our short term bearish bias. See chart below for more details.