The FOMC meeting is casting a long shadow across the Atlantic, as the Euro continues to have troublebuilding on recent gains. Mixed results with today’s German Ifo survey have also taken some of the sting out ofthe Euro, although it has been able to mostly shake off comments by the Italian Prime Minister that the EU shouldwork to weaken the Euro’s exchange rate versus the Dollar. The Euro would clearly benefit if the Fed takes apass on tapering this afternoon, but further progress may have to be made on improving economic data results -particularly outside of Germany – in order to see a rally beyond last week’s highs and the late October highs. TheMarch Euro should find decent support around the 137.32 level this morning, but may be vulnerable to a sizabledownside move later on in the session if a hawkish Fed erodes global market risk sentiment.
Technical Outlook: Rising from oversold levels, daily momentum studies would support higherprices, especially on a close above resistance. The market’s close below the 9-day moving average is anindication the short-term trend remains negative. The daily closing price reversal down puts the market on thedefensive. It is a slightly negative indicator that the close was lower than the pivot swing number. The next upsidetarget is 80.55. The next area of resistance is around 80.35 and 80.55, while 1st support hits today at 80.05 andbelow there at 79.94.