The Davos conference is probably helping to lift the Swiss but favorable Euro zone PMI figures, positiveUK data, generally positive sentiment toward the German economy has shifted favor back in favor of the bullcamp. In fact, the surprise reversal in the Dollar adds to the short term bull edge that will either be restricted orfanned significantly in the wake of a very active US report flow later this morning. We can’t rule out a temporaryrun up to 1.1133.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The close below the 9-day moving average is a negative short-term indicatorfor trend. The market tilt is slightly negative with the close under the pivot. The next downside target is 109.39.The next area of resistance is around 109.96 and 110.23, while 1st support hits today at 109.54 and below thereat 109.39.