The market is majorly short EUR/USD, of that we can be sure. And as such, it is will require patience as rebounds are inevitable as traders get nervous sitting with positions near trend lows.
But be patient friends. After seeing the president of the ECB, one of the smoothest communicators on the global stage gag his way through the latest press conference, one can only be short or square of the euro. Do not fade weakness under any circumstances.
Offers are rumored in the 1.3340/50 area and are about to be tested. Greek yields have narrowed some, now at 430 bp from above 450 earlier.
Poor US jobless claims and falling US bond yields are prompting some modest short-covering while central bank bids below the 1.3300 level are contributing to the present bounce.
