EUR/USD: Still in range-trading mode so look to sell rallies
The Spanish bail-out news is undoubtedly giving the EUR some bullish impetus and short positions which had been growing again are now getting cut. I nevertheless see no reason to abandon the recent range-trading mode and I will look to sell any exhaustive rallies to 1.3050/60 with an obvious stop-loss level above 1.3100 and the double-top neckline. I’ve also just reduced my AUD/JPY longs slightly at 81.10 as it seems to be struggling somewhat and I’ll now chop the balance either breakeven at 80.68 or at 81.68 for a clean 100 pip profit. It’s called the ‘sleep-easy’ trade.