recent data from Europe on industrial production showed us positive numbers in relation to expectation,(0.2% expected, actual 0.9%) but still it is less than previous month 1.7%. Euro might extend gain towards high 127's, and it gives good opportunity for a short position with low risk (small stop) trade. Last week high is at 127.90, so this can serve as a resistance and possible target for profit takers, pair was in uptrend since April 8th. Divergence is confirmed with MACD as well, but this indicator is not displayed because of clarity of the chart. Stops should be placed above highs from beginning of April 127.90, and targets should start bellow 127.00. Trailing stop could be good idea in case of this particular trade.
It is noticeable that Euro is recording bigger gains on JPY than on USD, and to keep in mind that any revaluation of Yuan from China would provide strength in JPY.
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