EUR/USD shorts were unable to get back all they needed on the brief dip below 1.3000 on the Treasury’s denial that they are ready to pony up for a European bailout.
Traders have begun to chance offers higher and we trade now above 1.3125/35, the area of resistance that we blasted through after the initial erroneous headline from Reuters.
A close above that area suggests we may have put in a near-term bottom and are due for a deeper retracement.