Somewhat of a train wreck overnight for EUR shorts across the board and the market was obviously overly positioned. The fundamental back-drop for the EUR remains bearish so I think we can still sell any big rallies but short-term sentiment will have shifted somewhat after last night’s rally, so dips will also be sought-after.
In EUR/USD, I’d suggest a wide 1.26/1.30 range over the next few weeks, presuming other factors stay the same. In EUR/GBP I think we can look for some more medium-term selling opportunities, but need to watch the price action for a while.
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