Eoin Treacy's view The Euro Trade Weighted Index has been ranging in a volatile manner since 2008. It found medium-term support above 120 from July and sustained a progression of higher reaction lows since. The Index has rallied impressively over that few months, at least in part as a least bad alternative to the Yen or US Dollar. It has posted a positive return in 9 of the last 10 weeks and is now short-term overbought. A consolidation of recent powerful gains is looking increasingly likely but a clear downward dynamic would be required to indicate the onset of such a reaction. However, a sustained move below 122, a distant prospect at this stage, would be required to derail potential for some additional higher to lateral trading over the next few months.