The 1.2965/80 was very formidable support on the way down in EUR/USD and I expect it to be a tough level to break on any rally. We’ve been as high as 1.2953 so far.
Heavy short-covering in EUR/CHF this morning has been a catalyst, spooking EUR/USD shorts a bit. I suspect it will be a passing fancy because risk-averse traders are merely parking their dough in the Swedish Krona. The Krona is very strong, but it is not literally off the charts, the way the franc is…
