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The EUR/USD pair fell during the session on Tuesday in order to test the 1.29 handle for support the second time in two days. This market still looks like it's a bit overbought, and a pullback to the 1.2750 level would be a natural place to see buyers stepped back into the market. Obviously, if that level gives way we could see prices as low as 1.25 in relatively short order as it is the next massive support area.
We still believe that overall, there are plenty of problems in Europe to be found and that the market has simply been ignoring them. There is more talk and chatter of the problems in Greece and Spain both now, and as such we think the Euro will continue to selloff in the near-term. As for buying, we simply won't do it as we see it taunt of noise between 1.30 and 1.33 or so.