Bank of America Merrill Lynch remains a USD bulls noticing that yesterday’s short-term signs of USD stalling failed to materialize. Indeed, BofA thinks that as EUR/USD has fallen sharply, it is now on track to test the confluence of long-term support at 1.2470/1.2450. "This has been a pivot since December 1987 (yes,1987, so we are using USD/DEM data pre-1999). While this zone may prove sticky, it should only be a temporary stopping point,as, big picture, the pair is on track to push to 1.2292/1.1876 (200m MA and Jun’10 low), and likely below," BofA argues "Back above the 6wk channel base (now 1.2813) is needed to ... (full story)