The Euro rallied into European trading and EUR/USD has finally cleared some of the stale offers/stops to the topside. Stops were removed in the break above 1.3005 (back to around 1.3015) to help fuel the push to the current intraday high at 1.3021. Bulls may look towards the 1.3030 level in the short-run, however, it will be the ability of the pair to hold the gains that will be significant in the long-term.
As a result of this technicians will look for a positive (if not 1.30+) close on the day to signal the end of the 1.29/1.30 consolidation phase that has dominated the bulk of 2007 so far. The 2007 high currently sits at 1.3296 and currently the 38.2% Fibo of 1.3296 to 1.2868 sits at 1.3031, therefore a break above here will signal more potential for a full retracement back to the highs.
Looking ahead, the Bush State of the Union speech may be due today but there is a host of event-risk before his comments hit the screens. The delayed leading indicator data from yesterday adds to the US Richmond Fed due for publication at 15:00 GMT while more ECB rhetoric is expected later.
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