The so-called ‘in the know’ accounts were selling EUR/USD and cable quite heavily yesterday during the London session. I’m not sure what’s behind it, whether they were taking profits on longs from last week or whether they are instigating fresh shorts, but there certainly was a lot of activity. EUR/USD still looks quite constructive to me but the big level to watch is now 1.3530. There are reportedly massive stops building below there and the market is bound to target them if/when we get closer. Remember what happened in cable when it broke below that pivotal 1.5500-50 support a few weeks ago? It fell 7 big figures in a straight line. A break now below 1.3530 in EUR/USD might this time create enough bearish momentum to challenge and defeat the big Sovereign bids in the low 1.34’s and such an event would be a game-changer in my view.