Euro continues short term downward cycle.

Euro/USD: The Euro started the day with a spring in its step and from an opening around 1.2738 values rallied to a peak of 1.2790 before heavy selling re-emerged. This forced the market significantly lower to challenge the 1.2690 zone before some short covering stabilised the market towards the close. The European day finished around 1.2710.

GBP/USD: A very similar trading pattern to that of the Euro with early GBP strength being restricted by resistance in the 1.6020 area. This disappointed the bulls and a combination of long liquidation and fresh shorting pushed the market sharply lower with little support being uncovered until the 1.5902 zone. The European session closed only marginally above here at 1.5908.

Euro/JPY: With strong resistance in the 10176 area restricting early rally attempts the Euro worked steadily lower throughout the balance of the morning and early afternoon. It was only after some support at 10043 was uncovered that a recovery was attempted and prices finally closed in and around the 10102 region

GBP/Euro: This pairing basically consolidated today as each moved in very similar patterns with activity being restricted between 1.2553 and 1.2510. This choppy sideways action finally closed in the 1.2517 region.

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