The AUD and the CHF have been the big ‘bubbles’ if you like and the market has sold the EUR against these two in particular with gay abandon. Now both EUR/AUD (a double bottom) and EUR/CHF (an imperfect inverted H&S) are threatening to post important reversal patterns. The levels to watch are 1.3325 in the EUR/AUD and 1.2725 in the EUR/CHF and as long as the market stays above these levels then the prospects for further short-covering in the EUR remain high.