In addition to the supportive PBOC action overnight, the Euro is also drafting some support from positive Euro zone PMI results which posted the best growth in 6 months. The Euro might also garner some fresh support from UK political pressure calling for Germany to back off austerity policies in an effort to facilitate a European recovery. A critical longer term downtrend channel resistance line is seen in the March Euro down at 1.1506 today and that resistance falls down to 1.1474 on Thursday.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher price action. The market’s close above the 9-day moving average suggests the short-term trend remains positive. The market’s close above the 2nd swing resistance number is a bullish indication. The next upside objective is 116.8250. The next area of resistance is around 116.0400 and 116.8250, while 1st support hits today at 113.8200 and below there at 112.3850.