The EUR/USD trades inside Monday range this Tuesday, consolidating between 1.2065 and 1.2145, nearing the base of the range as stocks fall strongly following worse than expected Manufacturing data in Europe, and a new record high in Spanish yields, this time at 7.60%. While the bearish trend remains intact, the downside momentum has eased over Asian session and early Europe, although it may be ready to resume: a break below yearly low set yesterday at 1.2066, should trigger further selloff in the pair, towards 1.2020 area first, and 1.1990 later on the day.

 A correction higher will only be triggered if the pair breaks the roof of this week range at 1.2145: stops start around 1.2150 and higher, and if broken, short covering could send price towards 1.2220 before sellers jump back in.

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