EUR/USD rebound blows out as US stocks reopen

The earlier noted rebound in the EUR/USD following the release of the US CPI report has now completely unravelled. The Euro traded to a high at 1.0653 immediately as the CPI data hit the screens, but as noted, it fell back again just as quickly and since then it has dropped back towards 1.0600, as the US equity markets reopen. The failure of the Euro to hold the rebound is of little surprise here and merely underscores what has been repeatedly said since even before the outcome of the US election-no one wants it. Well, they might for a short while, but the trend lower has been rock solid ever since an identified double top kicked in above 1.12 a couple of months back. The only question now, is how far will it fall, or has it done enough right now, at around the 1.06 handle. Well, of course it might have done, but once again we have to look at the European side of the equation and see if the rotation out of stocks here is continued. It is certainly not showing any signs of letting up yet and all the while that remains the case, the Euro is under threat. It is just now trading at 1.0608