EUR/USD longs forced to bail as more EUR/JPY profit-taking kicks in

The earlier drop below support at 1.0965 again on the EUR/USD has delivered some fresh downside. The EUR/USD seemed to deliver more capitulation following the benign French CPI data, which endorses that already seen from Spain and Germany. The push through the 1.0965 level has delivered a drop to 1.0940 so far, but it is just now trying to bounce off that low. The other factor that is play here, is further profit-taking on long EUR/JPY positions. The cross has trade to below 161 this morning. That had impacted the EUR/USD yesterday too, although the driving pair for most of that was the USD/JPY. The lower EUR/GBP (already noted here) is another cross pair weighing on the EUR/USD price action this morning too. Earlier, I also mentioned the potential for any month-end dollar selling to have run its course and right now that seems a little more evident as well. The EUR/USD is just now trading at 1.0954