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The EUR/USD pair fell during the session on Wednesday, but did manage to bounce back and form a relatively neutral candle. The beauty of the candle though is that it sets up a relatively straightforward trade. If we manage to get below the Wednesday low, then we would feel comfortable selling the Euro yet again. If we break the top of the candle, this could be the beginning of a relatively significant bounce, but we still feel that selling the rallies in this market is the way to go.
There a lot of questions unanswered in Europe, and as such we simply don't one on the currency. There are far too many headline risks out there in order to be bothered with the Euro and all of its problems. The US dollars without a doubt the preferred currency in the world right now, so selling it simply doesn't make sense either. We think that the 1.25 level is especially interesting if we manage to bounce to it for selling opportunities. However, each and every handle should produce some type of reaction in this market.