EUR/USD is consolidating gains in the 1.2715 area after an impressive rally for much of the US morning. EUR/USD recouped ground lost during the European morning after the Portugal downgrade, boosted by a successful auction of a small amount of Greek bills and on a wider US trade deficit, which suggested that consumption may not be as weak as the market had feared.
Stops were triggered above 1.2615, above 1.2650 and again above 1.2680. The final hurdle at 1.2723 fell shortly thereafter. A close above the 1.2677 level will be a bullish sign for EUR/USD over the medium-term.
