EUR/USD: Next wave of downward pressure about to develop

Germany and Greece remain poles apart when it comes to debt negotiations despite minor progress from time to time. EUR/USD has managed to get back onto the 1.14 handle on a number of occasions but the failure to break above 1.15 again is quite telling.

I’m also hearing reports out of New York (in the FXWW chatroom) that the market read too much into the FOMC minutes and that we can expect a more hawkish Yellen at the Humphrey Hawkins testimony.

Looks like the current phase has all the hallmarks of bearish consolidation. Selling rallies still the preferred play here.