Now that EUR/USD has re-established itself above 1.20, market sentiment towards the single currency has improved significantly. I expect this to manifest itself in some significant moves higher in the EUR crosses. EUR/GBP rallied 100 pips from its Friday lows and whilst I still wouldn’t discount another final push lower, a re-test of the .8400 breakdown level is looming as pivotal. On Friday we saw some new buyers apart from the SNB emerge in EUR/CHF and this will greatly increase the chances of a rally back towards the mid 1.40s. If the hedge funds start covering their shorts then there will be some sharp moves higher.