The EURUSD has worked its way into an ascending 15 minute channel ahead of the U.S. ISM manufacturing report. As of late, economists are forecasting manufacturing to increase to 58.0 in January from a revised 58.5 the month prior. As the euro has regained its footing on the back of risk appetite and speculation that EU aid fund may be authorized to buy new bonds from governments, a dismal U.S. report could lead the single currency to test 1.38 over the next 24 hours. Not to overlook, producer prices for the 17 member euro area are on tap. The report is of particular interest due to the fact that producers tend to pass on higher costs onto consumers. Thus, producer prices serve as an inflation gauge. All in all, remain long the euro so long as price action does not break and close below 1.37.