It seems that the so-called clever money is starting to book profits in the EUR/USD which should give those who wish to sell with abandon some food for thought. This by no means indicates that the EUR/USD has fallen far enough. It simply means that those clever enough to have sold between 1.35/1.38 are now happy to book their 1000 pips+ profit and see what develops from here. With the BIS still thought to be selling rallies towards 1.2700 as part of some extensive central bank transaction, a broader trading range of 1.2450/1.2700 over the next few sessions looks feasible.
The trend is still definitely down but perhaps selling rallies rather than breaks is the more sensible approach.
