Yesterday I mentioned the EURUSD – Short term Rectangle Pattern analysis that near the 1.3630 support area it might be some good buying potential. It seems that the Euro bounced really nice from the 1.3636 low and touched today 1.3697. This morning rally was mainly caused by the declaration of ECB’s Nowotny who said that the outlook for Europe as a whole is much better than a year ago and that the monetary policy has contributed substantially to economic recovery.
In the economic calendar today are scheduled to be released the European Area Industrial Production and for the United States the Core Retail Sales and Retail Sales, Import Prices, Business Inventories and the FOMC members Plosser and Fisher speeches.
From the technical analysis point of view, the Euro bounced from a good support area and gave some good reasons for bulls to continue buying. A close on the 60 minutes chart above 1.3685 would be a good bullish signal which could lead to a test on 1.3700 or, why not, if fundamentals sustain the Euro, a rally to 1.3720.