FXstreet.com (San Francisco) - The euro has extended its upward momentum to fresh 11-day highs versus the dollar early Thursday, reaching as high as 1.2867 and finding resistance in the 200-day EMA (today at 1.2864). Early reports indicate that stops were triggered above 1.2835 in EUR/USD, with next resistance noted at 1.2900 (50%, 1.3138/1.2660 downswing).

On the fundamental front, Dow Jones is now reporting that the San Francisco Fed Chief Williams just reiterated that he sees further scope for more bond buying, and that a scaling back of purchases would be counterproductive.

“Regardless the Greek chaos, the pair’s trend continues to be bullish at least in the short term,” says Valeria Bednarik, chief analyst at FXstreet.com. “Main risk factor in current Asian session, is Chinese manufacturing PMI: a positive reading may boost sentiment and push dollar one step lower against European rivals.”

If EUR/USD continues to trend upward in the global day ahead, a push above 1.29 could then target resistance at 1.2975 (Feb 16 low), while the analyst identifies bearish targets at 1.2800, 1.2770 and 1.2745.