• Flat supported by yen strength, EUR/JPY -0.4% on tighter yield spread hopes
• Risk on in Asia, E-minis S&P +0.4%, Nasdaq E-mini +0.6% into Apple results
• ECB fully priced to cut 25pt today - Statement, Press Conference key for EUR
• Markets expect a dovish cut as weak EZ growth overcomes inflation fears
• Charts - daily momentum studies conflict, 21-day Bollinger bands expand
• 5, 10 & 21-DMAs rise, neutral weekly moving averages - modest topside bias
• Targets a break of the 1.0535 December range top and test 1.0630 Dec high
• Close below Jan 23rd 1.0372 base and 1.0357 21 DMA ends the topside bias
• 1.0400/05 2.323 BLN, 1.0425/40 2.194 BLN close Jan 30th strikes
Andy
(Andrew Spencer is a Reuters market analyst. The views expressed are his own.)