The Euro has broken higher from a downward channel in the past hour and may be aiming to complete an alternate scenario above 1.374. Since March 18th, the Euro has seen lower lows and smaller highs as it has weakened against the dollars. Since the start of last week however, the pair has seen a change of tone and tested the channel top before giving back towards the middle of the range. Today’s move comes amid a slew of positive fundamental releases for the European region as confidence rose from a record low and nations including German look ahead to 2010 for growth. At the same time, the US GDP release for the first quarter came in weaker than expected at a 6.1% contraction. Economists polled by Bloomberg had estimated the figure to come in at a drop of 4.7%. Traders have been bearish on the Euro-region’s recovery for some time while remaining confident that the US would quickly emerge from recession. Indicators released today threaten that notion although it is far from certain whether conditions will continue to improve as the European Central Bank remains sharply divided on what to do next.
