US shares are lengthening their losses again having cleanly broken the level of support at 700 in the S&P 500. This has helped stall a modest EUR/USD rebound that took the pair back to the 1.2550s from lows around 1.2522. Speculators will be reluctant to push to aggressively to the downside in EUR/USD (except for those who are targeting barrier options) for fear that defense of 1.25 options may result in a loss of downside momentum.
Should 1.25 give way, 1.2422, 1.2387 and 1.2328 are the downside targets.
