EUR/USD has lost a little ground in London this morning but not enough to put a dent in my outlook. Euro skeptics rule in London but in other timezones we witness some decent rallies. In Asia we got as high as 1.3666 before being overwhelmed by sell orders. Those orders remain of course but the market is structurally very short. The Greece loan deal over the weekend was widely panned by all and sundry but sell-off since have been shallow and we have not been able to get back below Fridays NY close. The gap has been filled as far as I am concerned.
CitiTechs in a research piece sent out during the NY timezone put out a buy recommendation at 1.3590 with an arrow on their chart pointing at levels above 1.40 based on the double bottom reading. That I suppose is the technical perspective but from a pure trading perspective the market is too short and we need a topside clean-out – 1.38/1.39 as I wrote last night is my target.
