The EURUSD had some nice action in the London morning session. The price action trended lower – falling to new week lows.  The range is now a whooping 153 pips (that still represents the most narrow trading range for 2012 with 155 being the most narrow). 

In the early NY trade, a headline comment by Schauble, followed by a headline retraction created some fireworks and with the ambiguety causing anxiety, traders may be now giving up, but some downside hope still is a possibility….

The price has moved back below the 1.2434-41 area and is clinging to staying below this broken support level for the 2nd time today. Traders who are short from somewhere above, can feel encouraged by this but understand the price is not exactly moving quickly to the downside.  If short, you should now look for that move below the 1.2406/09 area (low today/low from June 5th) to continue your selling satisfaction.  If the price moves back above the 1.2441, it should signal a market that has indeed given up on a trend move and there should be some rotation back toward the upper levels with the 1.2464/67 being a point where if moved above, it would really confuse the shorter term bias.