The March Euro remains under pressure as markets are cautious ahead of peripheral government bond auctions this week. In particular, Portugal, which’s widely considered to be the most likely country to seek bailout after Greece and Ireland, will sell as much as EUR 1.25b debts this week. Spain and Italy will also have respective bond auctions too. Technically, Euro is generally weak against other major currencies, however I expect to see a short-term corrective rebound into Tuesday’s reversal date. Therefore I recommend exiting the short position and wait for a new reaction swing pattern to offer a new selling opportunity.
