A confluence of events has helped firm up support in EUR/USD today. Japanese jawboning helped drive up EUR/JPY. Chinese assurances that more stimulus will be forthcoming if needed is helping the risk trade while sovereign buying on dips is supporting unit.
Technically, the 200-day moving average at 1.3411 combined with the 38.% retracement of the two-month rally in EUR/USD comes in at 1.3400. Expect medium-term longs to be trimmed further if that area is lost early this week. 1.3490/95 is resistance near-term.
