It looks like the EUR/USD might settle into a short term 1.25/1.31 range (after all that’s what China seem to be playing) and I think we’d be wise not to get overly excited in the middle of this range. The EUR sentiment remains bearish but the market is short and the Sovereigns are looking to buy again with a who’s who lined up below 1.2650 (BIS, ACBs and China). Look to play edges only or else jump in and out for some quick jobbing is my suggestion.