EUR/USD session outlook
Greek 10-year bonds had a massive 124bp fall last night and hedge fund squawk boxes are filled with chatter about opportunities in the Spanish debt market. In terms of negative EUR sentiment, the worst seems to be over for now and the EUR is rallying . EUR/JPY is consolidating after its recent fast move and EUR/AUD is also looking to accelerate higher.
I’d suggest that 106.50 is the downside level to watch in EUR/JPY, which is where we had the acceleration from last Friday. EUR/AUD will find some volatility around the time of the RBA rate decision.
EUR/USD should find plenty of buyers now on pull-backs to 1.3000 and the main upside target is 1.3140.