The euro rose to 1.1385 from the 10-day low of 1.1324 (+61 pips) in Europe following the encouraging ECB lending report which prompted buying action against the major currencies. The ECB published its Bank Lending Survey (BLS) saying that the Eurozone banks reported an increase in loan demand and an easing of credit conditions for business loans in the 3rd quarter ending in September as the ECB expanded its asset purchase program in the past few months.
ECB Governing Council member Christian Noyer said that the ECB's QE program was "well calibrated" and did not need to be adjusted, late Monday yesterday which brought in additional euro buying interest in the European morning session.
European shares fell after the solid ECB bank lending data while the US dollar eased lower overnight following a surprise victory of the Liberal party in the Canadian elections. Commodities are trading higher as well against the lower dollar.
The 14-day moving average support levels: 1.1318, 1.1320, 1.1332. The 14 DMA resistance shows a double top formation at 1.1370. The momentum run appears to be short-lived at 1.1385 and the correction may bring it down to the 14 DMA support levels today.
Chart: WorldWideMarkets Alpha Trader