The Euro is trading better this morning and in a position to move higher after the single currency got a boost following successful debt auctions in Spain and Ireland. The success of these auctions helped boost demand for higher risk.

While this news is underpinning the Euro, it could rise even higher should this morning’s U.S. housing data show the economy is slowing. Later this afternoon, the Federal Open Market Committee is expected to leave interest rates unchanged at 0 to .25% along with its T-Bond quantitative easing program. The size of the rally this afternoon will be determined by the language contained in the FOMC’s statement.  If it’s perceived as softer than expected, then look for a sharply higher Euro by the end of the day.

The chart indicates this market is headed toward a downtrending Gann angle from the 1.3334 top at 1.3174 today. On the downside, this market seems to be finding support on a .618 price level at 1.3049.  A break back under this level will be a sign of weakness.