EUR/USD : Greece Bail Out

• Bounce to high of 1.3839 last night on back of reports of a rescue package for Greece.
• Technical picture unchanged by last night's price action. Still headed down longer term but may see near term pause in selling. Likely another bear flag to form on a weekly time frame.
• Midway through restoring core book short EUR risk to last week's levels but will put plans on hold in light of this and see how high this bounce can take us. Await (large black candle reversal on daily) before proceeding with original plan. Risk levels will be kept small to withstand this squeeze.
• Greg Gibbs of RBS Research on the Greece rescue : "Of course this is a double-edged sword for the EUR. While a support package for Greece may remove the immediate risk of rapid contagion, it transfers more risk to the core, and will have permanently damaged the credibility of the EUR as a better reserve currency than the USD. It will infect ECB monetary policy and generate stress between EU countries, even though they are emphasising their solidarity in this time of trouble. At the same time, confidence in the region's economy will also struggle to improve, and economic recovery is already lagging that in the US."
• Rescue will put upwards pressure on Bund yields so looks like 3.09% will not get taken out and buy Bunds trade signal will not be triggered after all. At least, not so soon anyway.
  
• Technical picture same for all other positions here ie Copper, S&P etc. Retracement time. Brace yourself.