I am seeing the same tired old stories being churned out to justify selling the EUR but I am not a believer. The market is short and whilst it may not like it, a rescue plan is being put in place to help get Greece back on the straight and narrow. Taking a line through where I believe the crosses like EUR/GBP and EUR/JPY should be trading, and looking at what’s happening in USD/JPY and cable, I expect EUR/USD to now hold broadly above 1.3270/80 and that we see a major short-covering rally in coming days towards 1.3700. Another pair to watch for clues as to when the turn is coming is EUR/AUD; any strong signs there that an interim bottom has been reached will add strength to my argument. Not a day-trading strategy I know, but I’m back in the buy-dips camp.