EUR/USD is still attempting to unwind from oversold conditions once again, having recently carved out a bullish morning star pattern. • However, the major trend remains bearish and is holding within a declining channel range. While price activity holds here, we prefer to sell into forthcoming rallies, which are likely to be temporary short-covering. • Watch for near-term resistance to come in at 1.2879, then 1.2920 and 1.3000/77 (psychological/04th Jan high). Only a sustained break above here will offer a stronger recovery into 1.3197 (see chart insert). • Meanwhile, the bears need to push back beneath this year’s ... (full story)