While it still has to overcome mixed commentary from ECB officials, the Euro appears to have found itsfooting and is posting moderate gains this morning. A better than expected reading for Italian consumerconfidence has provided a modest boost, but it has been comments from the Chinese central bank governorendorsing the Euro as part of that nation’s reserves which may be providing the heavy lifting early today. It will bedifficult to overcome the ECB’s easing bias, particularly with thoughts of negative deposit rates still rattling themarkets, but a shift in focus back towards US economic data could help it consolidate its recent recovery. TheDecember Euro may climb back towards the 135.60 level later this morning, but looks to have limited upside untilcritical Euro zone data is released later on this week.
Technical Outlook
EUR (DEC): The upside crossover of the 9 and 18 bar moving average is a positive signal. Positivemomentum studies in the neutral zone will tend to reinforce higher price action. The close above the 9-daymoving average is a positive short-term indicator for trend. The market’s close below the pivot swing number is amildly negative setup. The near-term upside target is at 135.8950. The next area of resistance is around 135.4900and 135.8950, while 1st support hits today at 134.7900 and below there at 134.4950.