Watch the Euro

As the market waits for the RBI announcement, what has baffled most analysts has been the sharp rally in the Euro over the past 2 weeks.

The euro has held near 1.37 all of this morning, and no real signs of weakness can be seen despite a 6 percent rise.



Up ahead is the high volume zone of 1.385- 1.39 which was the levels the Euro was trading pre- QE2 announcement by the FED.

If it continues moving higher, all the bearishness in equity markets would evaporate.