The EUR is heavily oversold in my opinion and we are at the beginning of a retracement phase. The political and financial issues have not disappeared overnight, it’s simply that the market has sold too much and is now taking back the excess. The same applies to GBP/USD, perhaps even more so. The one currency pair which has me a little confused is the AUD/USD. It has been over valued for some months now and let off some steam by falling to a technical support level at .8570. I am now undecided as to whether we are in an .8570/.8850 holding pattern before the fall resumes, or whether we are about to bounce straight off the support level back to levels above .9000. If I could figure out what the AUD/USD is going to do, I think the overall picture would be much clearer to me.