The reversal in fortunes after the announcement of the EU/IMF bail-out for Ireland will be worrying EUR bulls. Liquidity is getting worse and we can expect bigger and sharper short term moves. Technicals will be of less use as fewer people play in the lead up to Christmas. The only orders I’m hearing about are relatively small so we’re unlikely to get leads from there.
1.3575/1.3635 are the short-term levels to watch and a break of either will probably be good for a 50 pip move.
