Intraday Update

Further to this mornings' earlier post.. Spain v Germany has turned from + 10bps on the day at the time of below writing to -15bp as I write. It looks like the divergence below was in favour of the EURO, which is 100 tics higher at 1.2390.

Beyond that. If this morning's move can be sustained, I am leaning towards entertaining the possibility that we may have a more substantial EURUSD correction than I originally envisaged. The 2 charts below, show some price action which is indicative of my thinking. Though it must be borne in mind, that a) today's move is only an intraday move so far. b) one can not rule out another shake out creating a re-test of the low. I would also add that in recent weeks a potential multi-year 'Head & Shoulder' neckline was broken, which projects the EURUSD much lower, however, breaks of necklines are often re-tested, and this currently resides at 1.2710.