Market sentiment is bearish and the market is still short but the buying by Asian central banks below 1.3100 is threatening to put a base in place. The EUR crosses remain heavy and with the big three, namely EUR/JPY, EUR/CHF and EUR/GBP, all currently in ‘bounce’ mode, there should be resistance looming pretty soon.
Talk in the market is that there are some decent sized sell orders in EUR/USD near 1.3200 and of course there is the Sovereign interest on the downside below 1.3100. Playing this range seems like a sensible day-trading strategy.