The market closed in NY at 1.3245 and opened higher after news of the details surrounding the Irish bail-out emerged. The interbank high was 1.3345 but the retail market obviously wasn’t long and the pair has drifted lower towards 1.3270 now that all markets are open.
I’m not sure which way it goes; another break back onto the 1.31 handle would be a very bearish sign imho but a lengthy consolidation through European trade and a break above 1.3350 would probably signify that a short-term base is in place. Best to sit back and see how it develops.
