The hourly charts on the EUR/USD suggest to me that we are likely to see a test of support levels around 1.2450 and it looks like such a test is evolving in the early part of the session. There is also, as I mentioned earlier, decent resistance in the cable at 1.4500 which is slowing down any further gains. My favoured scenario for the EUR/USD is that we drift lower during Asia, testing support at 1.2425/50, and that the next major rally launches from there if the level holds firm. Let’s see what happens.