The euro touched 1.2964 on some short-covering and and the Greek upgrade.

I don’t like picking bottoms and catching falling knives and here’s why: Aside from the odd exception (like EUR/AUD) a ‘V-shaped’ bottom is unlikely. What’s more often is something like we see in the euro where it flattens out. That’s even better if some bad news/headlines hit and the pair doesn’t fall further.

A bit of an inverted head and shoulders has formed in EUR/USD and a climb above resistance at 1.2963 and 1.2987 could kick off a bit of a retracement. Ultimately, I would much prefer to wait for the rally and then sell it but if you’re desperate to buy. Getting it on a break of those levels is good idea.

EURUSD daily chart Sept 12 2014

EURUSD daily chart