EUR/USD: Continue to favour the short side
- Medium-term trade idea from a week ago is starting to evolve;
- Trend-line support and a 61.8% retracement at 1.3510/15 (see chart);
- I’m staying bearish on some of the main EUR crosses with EUR/AUD back at long-term neutral levels, EUR/JPY looking heavily overbought and EUR/GBP sentiment decidedly bearish).
I’m running small shorts here from last week and will sell any 100 pip rallies but if 1.3500 is tested again and holds then will need to re-assess.