We saw some serious short-covering in the AUD/USD get underway in late Asia yesterday and the EUR/USD followed suit overnight, rallying towards important technical resistance around 1.2650. The big question is whether we are seeing the usual whippy holiday markets with false moves every second day, or whether something more fundamental is underway. I will continue to trust the technical resistance for now but a break above 1.2700 in the EUR/USD would change my opinion. I remain short AUD/USD but my stop is now closer than I’d like.
Good luck today.
