Expectations that the ECB will remain “on hold” with fresh easing measures after their November rate cutmove has been a key source of support during the Euro’s recent up move, but it may take some fresh positivenews in order to make a decisive move up and beyond the key 138.00 level. German CPI data was in-line withforecasts, but also provided few hints of any broad upcoming improvement for the Euro zone’s still sluggishinflation levels. Further progress on banking union issues at the Euro group meeting in Brussels may provide anadded boost later in the session, but the Euro still needs to avoid potential risk flare-ups from the peripheral EU inorder to consolidate its recent gains. The December Euro may rise up towards the 137.84 level later in the day,and should remain fairly well supported at these current price levels.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. The closeabove the 9-day moving average is a positive short-term indicator for trend. The market has a slightly positive tiltwith the close over the swing pivot. The next upside target is 138.2575. The 9-day RSI over 70 indicates themarket is approaching overbought levels. The next area of resistance is around 137.9450 and 138.2575, while 1stsupport hits today at 137.3350 and below there at 137.0375.