There seem to be a lot of comments and opinions emanating from the EU on the Greek situation despite the 30-day cooling off period but the EUR/USD continues to hold up quite well. The reason for this is the strong buying interest from Sovereign names and if this interest remains the danger is for more sharp short-covering rallies from an already short market. The failure of EUR/JPY to establish a foothold below 120 will also create a bit of angst in the short EUR ranks.

On the day, I prefer to buy dips in EUR/USD as I anticipate another relief rally towards 1.3800. In EUR/JPY, I expect a 120/122 consolidation range but my bias is still to sell any strong rallies. On EUR/GBP, I’m now bullish.