Euro On the back of weak US data the Euro tested 1.56 rallying from 1.545 early in the session. The dollar traded near the lowest in more than two weeks against the Euro on speculation of an industry report this week which will signal the worst housing slump in a quarter century and weigh on the U.S. economy. Euro also received a boost from ECB president Trichet’s hawkish comments on fighting inflation creating doubts of rate easing this year. Little data out of Euro zone leading into German ZEW survey tomorrow
Tech view:
EURO is expected to be in the range of 1.5520-1.5630.With good support seen at 1.5500 and key resistance is seen at 1.5650.Chart pattern indicates the currency to be bullish note. Currency is trading well above the fast and slow moving averages and is trending up. stochastic and RSI is also supporting the bullish move however momentum is signaling towards the possibility of a small market correction.
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