Forex Market Update: EUR/USD Bounces Back Ahead of German ZEW Investor Confidence Sur

[B]EUR/USD rebounded from 1.3747 overnight lows[/B][B] [/B]to trade back in to 1.3880. Eastern European interest was strong and there was good bargain hunting via EUR/JPY after early interest from a Swiss account around its 132.70 lows. Russia reiterated its view that the world needs new reserve currencies, but called for a cautious approach to a global currency. EUR/USD pushed higher and triggered stops on the way up to the highs. There was some speculation that the German ZEW might come in on the stronger side and above the 35.0 median, which may have aided the upturn. Equity markets found a modicum of support following Monday’s sharp losses and this added support, although on the whole the pair traded at familiar levels after failing to sustain the break of range. The market got caught short lower down after the short term market jumped on the break of the head and shoulders pattern on the daily chart, along with negative Eurozone sentiment and dollar supportive comments on Monday. However, there was a lack of appetite to sustain momentum and prices turned quickly today, which reflected the fickle trading conditions.