Looking to Sell Euro Rallies

The market seems to have found some form of a base for now by 1.2585 ahead of the latest bounce and while the overriding structure remains bearish, shorter-term technical studies do not rule out the possibility of additional upside before we see a bearish resumption below 1.2585. Given end of month flows and some fundamental risk, volatility could be running quite high for the remainder of the day and this could result in a meaningful intraday rally for the pair. At the moment, our daily ATR analysis projects a potential high on Friday in the 1.2820 area, while the 78.6% fib retracement off of the latest 1.2920-1.2585 move comes in slightly higher by 1.2850. As such, we will look to take advantage of any intraday rallies towards these levels, with the market still confined to a broader downtrend. STRATEGY: SELL @1.2845 FOR AN OPEN OBJECTIVE; STOP 1.2945. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE ON FRIDAY.