Yesterday's price action suggest that E$ was going through a corrective phase searching for a bottom. It briefly touched 1.2442 low which was close to its 61.8% retracement level and rebounded into its defined range. Looking at the chart below, E$ seems supported above 1.2480 (line) and the past 3 days' close suggest E$ has a higher probability of testing yesterday's high of 1.2529.
EURAUD breaking support at 1.2600 provided some form of affirmation as AUD$ recovered and stayed firm through the NY session.
Despite the sell-off in E$ on Monday, it has not breached my technical level to call off my USD bearish view for now.
Market is flirting around the neutral zone and I see further consolidation (within a relatively narrow range) but with an upside bias for today. It may not be a high percentage call but given the controlled environment where tight stop can be placed, I shall attempt to buy the dip.
1.2470/80 to hold (1.2400/380 news induced) and 1.2540/50 to cap.
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