The bulls will be slightly more optimistic after prices failed to consolidate the bearish break below 1.2870. Trailing stops are reported above 1.2925 which is not a surprise really, as many will have sold the break in the hope of a big move lower. I’m more bearish than I was yesterday but as always we need to wait for the optimum entry level (when all the stops are done!).
The main event overnight was the big move out of EZ by asset managers and if this continues then the EUR will be unable to maintain current levels. I’d suggest bears should wait and sell rallies back to 1.2950ish.