The EUR/USD experienced wild swings yesterday despite an incredible rally in U. S. equities. Considering both have been positively correlated during significant movements, the EUR/USD's lackluster performance was a bit disconcerting.

However, the EUR/USD found support on our uptrend line once again, and is rallying strongly on Wednesday. Interestingly, the Euro is appreciating today despite extremely negative reports from the EU's economic powerhouse, Germany.

Germany's PPI came in below expectations while the country's Factory Orders data was dismal. Hence, the EUR/USD certainly doesn't have the data backing to follow through on its present rally. While the EUR/USD has been trying to piece together an uptrend over the last week, the currency pair has not shown a convincing streak of upward movements thus far.

The EUR/USD still faces February highs, our 2nd tier downtrend line, and the psychological 1.30 level. Considering all of the above, even though we may see the continuation of a near-term rally, we have a negative stance on the EUR/USD trend wise.

Fundamentally, we find support of 1.2730 with additional supports resting at 1.2706, 1.2673, and 1.2633. To the topside, see resistance at 1.2770 with additional resistances hanging at 1.2797, 1.2828 and 1.2868. The EUR/USD is currently exchanging at 1.2768.

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