Euro Rally Could Build if EUR/USD Clears $1.3770, EUR/JPY ¥141.45

Talking Points:

- EURUSD climbs through former TL support, eyes 1.3770.

- EURJPY in pivot zone 140.85/141.45.

- Next set of important Euro-Zone data comes Friday.

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The Euro has weathered the first set of signficant data for this week, as the German IFO survey and Euro-Zone CPI reports underscored a slow but steady growth environment. Specifically, with respect to inflation, soft CPI data this week could revive deflation fears ahead of the European Central Bank's March meeting.

The EURUSD must clear 1.3770 to trigger longs, and failure there alongside a move back below 1.3680 would mark a top. Otherwise, now that the ascending TL from the July and November 2013 lows has been reclaimed, the technical bias is starting to shift higher.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

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