The euro has already started the move, early in Monday's trading session, currently trading up at the 1.22 figure. The base at 1.1880 may be solid and we'd be happy to see consolidation at 1.2150 before a continuation higher. Also this week, economic data should drive the equity markets higher. Lack of inflation (expected) as well as an important bounce in the DOW last week from the 9800 level should continue giving the majors a boost against the dollar and the yen. We're keeping an eye out for significant world events that may put pressure on a recovery and we'll be looking to take advantage of a move based on risk aversion. Important levels for the DOW Jones are 9750 and 10300. A close below or above these two levels should indicate a continuation in one of the two directions. Equity markets up means the dollar down, and vice versa.
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