The EUR will benefit of course from the heavy short-covering in the crosses of the last 24-hours so I expect dips in EUR/USD back towards 1.2660/80 to find plenty of willing buyers. Nevertheless, EUR/USD is still in a downtrend and the overnight flight back to the USD and out of emerging currencies would imply that any EUR/USD rallies will find plenty of willing sellers. I’d guess that 1.2650/1.2800 should cover most eventualities for the next few sessions, but much will depend on where and when the big orders enter the market.
