I think we need to consider the fate of the EUR from both a short-term and a long-term perspective. The long term outlook still looks very poor. Greece may well get bailed out but it is no position to ever repay its debts (a bit like the US, most other countries and leveraged investors around the globe!) so all we are doing is postponing the inevitable. But the bail-out might be enough to see the EUR shorts start to cover and this short-covering could well feed on itself.
I’ve got trendline resistance from 1.3665 through 1.3415 coming in around 1.3320 and I suspect that a break above there might turn the short term sentiment around.
