The EURUSD rallied overnight modestly after yesterday’s sharp selloff. The price has not been able to correct 38.2% of the move suggesting a little reluctance tot he upside. The 38.2% upside resistance comes in at 1.4121. The bias is to the downside. We could build a bear flag to the 38.2% and then the next LOWER target is 1.3927. The IMF is on the newswire, saying ECB should keep interest low as long as disinflationary pressures persist. This is pressuring the EURUSD since this was unexpected.
