Euro Catches a Bid

 Any early market strength is almost certainly attributable to the Euro moving up since the 9:30 open (green arrow) and although this looks impressive...

It's almost certainly technical related then anything else as the Euro did break the important $1.30 mark last night. In this light, a technical bounce is to be expected, we see it almost 95% of the time when an important technical level has been taken out. In fact, the action in the Euro over the last 3 weeks is directly attributable to the original break of $1.30 in which we expected a bounce even while the Euro was still moving down.

 Here's a daily chart of the last break of $1.30 and the subsequent bounce.

This is a much longer view showing a top formation in the Euro and the break of $1.30.

This is all part of a much larger, multi-year downtrend. Here's a weekly chart.

The bigger picture here doesn't look good for the Euro or any correlated assets.