We are a seeing a glimmer of hope for the poor euro; It did brush itself down, wipe way the tears and manfully pulled itself from the brink of the abyss to rise above 1.1231 to 1.1297. There is still a away to go, but there should be further strength left in the depth of this market, enough for further corrective pressure. The USD rally is well overdone and this may be enough to see the currencies rise from the mire and trade higher.
Today we'll need to stay above 1.1227/11 to achieve this, and if we can there is no reason at all why for the rest of this week we won't trade higher. This would ease the severe oversold conditions evident across the board and at least leave the euro with a fighting chance of reaching 1.1460. possibly 1.1535. We know that this is good resistance, so take profits here and re think.
If the market has recovered enough we will once more trade lower. However we have taken a battering in the currencies and it would be nice if the euro could make its way back to its break point of 1.1770. I'm not holding my breath, but it's not completely out of the picture. Below 1.1211, we are once more looking at 1.1137/25 as a short term objective.
