FXstreet.com (Barcelona) - The market is playing ping pong with the EUR/USD. After a sudden plunge just ahead of the European opening after triggering stops at 1.3000, the pair found support at 1.2960. Now, the market jumped off above 1.3000 to 1.3048 high, with no particular reason known yet. The rally is still ongoing, currently of 92 pips range, up by +0.57% on the day.

The ECB's Likanen spoke about the European banking union, a long-term project that could solve the current crisis if the plan is seen as credible by market participants. The EU's Barnier said that there will be no German resistance to the ECB supervision plan, and compromises will be made.

The pair has retraced more than half of the weekly losses, but is still away from the Monday opening of 1.3121. “The Elliott wave count is implying that we will see a deeper pullback near term to 1.2829/1.2700(200 day ma), provided this, together with the 1.2585 uptrend, holds we should have a renewed upside attempt”, wrote analyst Karen Jones, pointing to a directly offered market at 1.3050.