Mixed results from key data from the region has kept the Euro under wraps, as it has held its ground inclose proximity to the recent highs, but has been unable to mount any serious challenge to the key 138.00 levelso far this morning. Today’s final Euro zone inflation readings for November provided few surprises whileconfirming the sluggish levels that provoked the ECB into last month’s rate cut. A much stronger than expectedGerman ZEW survey has provided surprisingly little support for the Euro, as the out performance of German datamay be starting to get discounted by the market. The March Euro should find decent support around the 137.44level later this morning and along with the Dollar may also be waiting on tomorrow’s FOMC meeting results beforemaking a decisive move outside this recent consolidation zone.
Technical Outlook: Momentum studies trending lower from overbought levels is a bearish indicator andwould tend to reinforce lower price action. The close above the 9-day moving average is a positive short-termindicator for trend. The market could take on a defensive posture with the daily closing price reversal down. It is aslightly negative indicator that the close was lower than the pivot swing number. The next downside target is nowat 136.9050. The next area of resistance is around 137.6900 and 138.1450, while 1st support hits today at137.0700 and below there at 136.9050.