Remember how difficult it was to sustain EUR losses below 1.3200? We have loads of support now in the 1.3165/80 area now after multiple rejections of those lows last week.
After yesterday’s clean out of shorts on the rally to 1.3500, I suspect the market is much less short of EUR/USD.
The risk is now that we break that support area with relative ease and make a run at supports just below the 1.30 level.
Speed bumps along the way include an area of resistance at the 3.61% yield area on the charts in 10s, not to mention the EU summit tomorrow and Friday. Who knows? The EU might get something right for a change…
