Forex: EUR/USD steady circa 1.3360 but bulls are smiling

FXstreet.com (San Francisco) - EURUSD opened at its 9-month highs after Friday's push above 1.3300 key resistance, extending as high as 1.3364 where it now exchanges in early Asia. Volatility is expected to be thin in FX with a holiday in Tokyo today, so look for tight ranges.

The market advanced around 2% last week, stalling at the 200-week EMA (this week at 1.3345), but, should the bullish momentum persist in the global day ahead, 50% Fibonacci retracement resistance is noted at 1.3483. Bearish targets may be found at the immediate 1.3300 psychological figure (Dec 16 high), then 1.3170 (Sep 16 high).

Greg McKenna, Chief Executive at GlobalFX explains: "Clearly a large part of the Euro's rally is technical and clearly a large part seems to be relief that over 2012 the chances of a Euro break up didn't occur and seems to be receding."

He continues: "Equally given the time of year the moves are also probably a readjustment of positions within large investors and Money Managers portfolios& So unless earnings season, specifically the financials in the US this week, pour cold water on the bulls they seem to have the ascendancy for the moment."

EURUSD currently trades at 1.3358.