The short term charts are showing a basing pattern with support now looking quite firm at the 1.2750/80 level. The recent downmove on the daily chart stalled at a 50% retracement level and although the attached weekly chart is in a gradual downtrend, it certainly has scope for a retracement towards the 61.8% retracement (1.515/1.1875) at 1.3900.
With the market now concentrating on the USD woes rather than the EUR woes, I prefer a moderately bullish strategy over the next couple of months, playing a 1.2750/1.3900 outside range with a bias towards buying dips.
