After being down and sideways for much of 2009, new life seems to be entering into the Euro. The EUR/USD is currently challenging its 20 day high of 1.2991.
If the Euro can close above this level, the 1.3326 January 28th highs is the next target. Continued strength in global equity markets after the G20 summit may have ushered in a wave good feelings toward risk which would be bearish for the USD across the board. If the Euro fails to close above the psychological 1.3000 whole number resistance, look for a set back all the way back to 1.2500 and below. However, MACD and its signal line crossing above the zero horizontal reference line on a daily chart is extremely bullish. Stops could be placed below the March 15th swing low of 1.2832 to target 1.3341.