After a slight downward correction in overnight trading, the EUR/USD has once again entered into a bullish uptrend. The pair has shot up to the 1.2950 level and forecasts are for a prolonged bullish run to the next resistance level of 1.3100. This resistance level coincides with the 38.2% Fibonacci retracement level from the long term downward trend that began in December of 2009.

This afternoon, traders will want to focus on the TIC long term purchases report and the U of M Consumer Confidence report which are scheduled to be released respectively at 13:00 and 13:55 GMT.

Forecasts are for a steep drop in both reports from the previous month, signaling further weakness in the U.S. economy. Traders are warned, should the reports come in lower than expected, the greenback could fall further against the majors. Current momentum is against the dollar as both the EUR/USD and the GBP/USD have recently broken major bearish trend lines and have begun a sharp reversal higher.