The Euro closed lower Vs the US dollar on yesterday as it failed to break 1.2800 and declined into the mid 1.27's where it settled for the Asian session. Support is formed by 1.2730 backed by 1.2700 and 1.2660. Resistance emerges at 1.2780, 1.2800 and 1.2830. High volatility is expected later today due ECB's rate decision and Trichet's press conference. Daily momentum lost some strength but it remains highly bullish. Hourly sentiment is neutral at the time of this writing. While the 1.2700/1.2730 support levels hold, the upside remains favored. We are expecting a resume of yesterday's test of 1.2800. Current quote is 1.2750 @07:10 GMT
Recommended trades:
Long in the 1.2730 area, stop below 1.2690, objectives at and above 1.2800.
