Euro exchange rate outlook remains positive: Today's market action suggests the shared currency is something akin to a safe haven

The euro (Currency:EUR) is showing us just how sturdy it is once more today - despite a broad-based market sell-off the shared currency remains resolute. Indeed, one is beginning to notice that the euro is acting something akin to a safe-haven:

The euro dollar exchange rate is flat on last night's closing rate at 1.3339.
The euro pound exchange rate is 0.16 pct higher at 0.8519.
The euro Australian dollar rate is 0.03 pct higher at 1.4070.

NB: The above are wholesale quotes; your bank will affix their own discretionary spread to the numbers. However, an independent FX provider will guarantee to beat your bank's offer, thus delivering you more currency. Please learn more here.

Overnight, Asian equity markets are again deeply in the red, with Japan still underperforming.

"Uncertainty both on the potential impact of tapering of the Fed policy and at growing doubts on the viability of Abenomics to turn the Japanese economy, make the recent global repositioning to continue. Japan is in the eye of this storm. USD/JPY is again sold. EUR/USD continues to drift higher," says Piet Lammens at KBC Markets.

Technicals suggest today's outlook is bullish for the euro

Turning to the charts for guidance into the euro's outlook for today we note a technical setup.

Joshua Mahony, analyst with Alpari UK, says:

"A notable rise in the eurodollar today brings about an renewed bullish outlook for the pair, with price action breaking above an ascending trend-line from February along with a key Fibonacci level.

"The recent rise in this pair has typically been capped somewhat by an ascending trend-line, which was broken in yesterday’s session. The ability to do this without any form of retracement shows there is still strong upside movement left in the pair.

"The price action has found support on the 61.8 retracement level at 1.334 and subsequently we are looking for a further move higher today."

Debate on OMT legality - no bother for the euro yet

The euro remains unfazed about issues concerning the German constitutional court, which is yet to give us a decision.

"The European Central Bank defended itself in German court against suggestions that its role should be more limited. ECB’s Asmussen warned that opening the debate on whether the ECB’s powers should be redefined would open a Pandora’s Box," says Lammens.

We hear today that a verdict on the issue is not expected for several months.