I’m hearing from some good sources that there are decent sized bids in the EUR/USD starting at 1.3550 down through 1.3500. The market has been heavily short EUR across the board for the last few months and whether it likes it or not, a solution seems to have been found for the Greek problem. If Portugal or Spain suddenly turn up with similar problems then of course the EUR will get smashed, but for now it looks like we are in for a period of continued short-covering.
If a lot of heavy selling has to be done in order to close the gap to 1.3490, that then might indeed be an excellent entry level.
