The pair, currently trading at 1.3011, spiked higher off risk on sentiment this morning as month end flows combined with thin markets to cause a bounce. Todays data so far has seen mixed German Retail Sales, positive French Producer Prices and Spanish Current Account Balance and in-line Italian Unemployment. 30 year German and 10 year French auctions are expected this morning before the headline event of the session in EU CPI at 10:00 GMT.
Stoyan Mihaylov of Delta Stock is bullish on the pair and sees a test of the crucial 1.3022 level en route to 1.3085 and 1.3170. He sees initial and critical support levels respectively at 1.2967 and 1.2946. Elsewhere European stocks are up alongside commodities whilst critical yields remain down and stable.