The risk aversion trade and anticipation of a 50 bp cut from the ECB helped undermine EUR/US overnight. The pair fell to the mid-1.3320s, stalling above the 1.3310 lows seen last Tuesday. Support below the recent lows comes in at 1.3241, the 61.8% retracement of the 1.2329/1.4719 rally. Fear of an imminent dollar collapse have been allayed in recent days as the US had little trouble finding a home for more than $100 bln in debt last week. Stories of the dollars demise are greatly exagerated….
