The EURUSD bounced of support in Asia and squeezed higher in European and Asian trading.  The catalyst for the move were comments suggesting that granting the European Stability Mechanism a banking license is a plausible course of action.  If this measure was followed liquidity would be increased in the euro zone.  Support heading into Asian trading can be found at the day lows at 1.2040 and resistance is at 1.2160.  A push above resistance could produce a short squeeze back towards the top of last weeks range at 1.2330.

Sup   1.2040

Res   1.2160               1.2330

Keane Insight:  Watch for a push above 1.2160.  A hold above could lead to a move higher towards 1.2330


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