EUR/USD: Cross buying helps put interim base in place
- Most recent downmove stalled at a 50% retracement level (see chart);
- EUR/AUD saw some some heavy corporate buyers emerge below 1.4300;
- EUR/JPY trading towards upper end of consolidation pattern (see chart) and a break above 132.40 could accelerate momentum;
- Modest profit taking also emerged in EUR/GBP.
Overall it still looks like a sideways trading proposition for EUR/USD but the bulls have the better short-term prospects in my view. Buying any dips back onto the 1.31 handle makes sense and we will certainly see some dips whenever Draghi tries to talk it lower.