Euro is feeling some resistance against dollar at around 1.28 level as risk rally loses steam. Markets reaction to S&P’s downgrade was so far limited, which reflected in successful bill auctions in Eurozone. But the current recovery in Euro is mainly seen as short squeezes following the pre-downgrade selloff. The common currency’s down trends against dollar, yen, aussie and even sterling are still intact. It remains vulnerable to more downside. Portugal will sell a maximum of EUR 2.5b of 3-, 6- and 11-month bills today and might not trigger much reaction.