The market was anticipating a rate cut today and it got what it wanted. Now we have seen support levels at 1.0320 breached but with the market already short, I’m not expecting a complete collapse. I’d expect profit taking to be quite solid around 1.0250/70 and the downward channel which we’ve been monitoring should provide support ahead of there near 1.0290ish.
Overall though the bears will be more comfortable and any 100 pip rallies should be seen as selling opportunities.