Following are expected trading ranges and outlook for EUR/USD today:

EUR/USD - to trade in higher range on weaker USD sentiment, reduced fears about sovereign funding in euro zone after Spanish government auctioned off double the amount of debt it had planned to sell and Italy sold one-year bills at a cheaper yield than last month; ECB President Draghi saying there are tentative signs of stability in business activity as central bank kept its key interest rate unchanged at 1%. But euro sentiment dented by surprise 0.3% on-year drop in euro-zone November industrial production (vs forecast for 0.3% increase). EUR/USD topside also limited by worries that Greece may default on its debts or be forced out of the euro zone as fresh data confirmed that Greece remains mired in recession and will overshoot its deficit targets this year, while key areas remain unresolved in talks with private-sector creditors on a debt write-down plan; potential sovereign rating downgrades in the euro zone; positions adjustment before weekend.

Data focus: 1000 GMT euro-zone November trade balance.

EUR/USD daily chart positive-biased as stochastics rising from oversold; MACD staging bullish crossover against its exponential moving average.

Resistance at 1.2846 (yesterday's high); breach would expose upside to 1.2946 (Jan. 5 high), then 1.3077 (Jan. 3 reaction high), 1.3095 (Dec. 23 high), 1.3120 (Dec. 22 high) and 1.3199 (Dec. 21 high).

Support at 1.2714 (hourly chart), then at 1.2700 (yesterday's low) and 1.2661 (Wednesday's 16-month low); breach would turn near-term outlook negative, targeting 1.2642 (Sept. 10, 2010 low), then 1.2625 (Aug. 31, 2010 low), 1.2588 (Aug. 24, 2010 reaction low) and 1.2522 (July 12, 2010 low).