EUR/USD rallied from 1.31 to 1.37 after the market was caught bearish and short. The fundamental outlook for the EUR has not changed and internal bickering on the ECB will not help, but I believe the market is still short EUR/USD and importantly is uncommitted. This is why we are seeing the EUR lose ground swiftly against the JPY and the GBP because the market is also very wary of being long USD. I do not expect EUR/USD to break back below 1.30 anytime soon. Shorts will be happy to cover in the low 1.30’s and I expect to see more range trading between 1.31/1.37 before the focus returns to the USD and we see an exhaustive spike higher in EUR/USD. But that’s for another day. If you missed selling at 1.3650/1.37, don’t be chasing this move lower, and if you really want to sell, keep your expectations realistic.