Euro climbs above resistance
The euro is only up 22 pips today to 1.1380 but in the process it has carved through a couple of resistance levels. The rally today took it above the 50% retracement of the January fall and above last week's high.
I don't see either of those levels as particularly important but combine it with the Feb low finding a base above the November low and there's some reason for optimism.
On the economic side, I can't find a good reason to buy the euro but it's been battered for months by bad numbers and signs yet it held the Nov low fairly easily. On a risk-reward basis, the balance is beginning to tip, similarly to how the pound has rallied this week.
Technically, the next levels are the 100 and 55-dma at 1.1389 and 1.1393, respectively. Those are very close by so they won't give way easily but if they do, I think it could be a quick move back up to 1.1475.
