EUR/USD rally proves fleeting
EUR/USD managed to spike higher overnight, but the move proved fleeting, with the price subsequently returning to the consolidation area once more. We are seeing little volatility this morning. Although, once things get moving, there is a good chance we could see another move higher to post a deeper retracement of the $1.1858-1.1725 drop.
However, that would be a counter-trend move, given the wider downtrend. A move back below $1.1725 would essentially negate the notion of a further upside move over the short-term, pointing towards further losses.