The Euro bulls have to be relieved that the Euro isn’t under a fresh washout move on the charts again thismorning. With the press and many officials seemingly pressing the ECB to provide more support to the Euro zoneeconomy and US economic news easily besting most Euro zone results, a continuation of the downside track inthe Euro looks likely. Cushioning the Euro against further downside is stalwart results from Germany and a slightimprovement in Euro zone Consumer Confidence levels. However, while Euro zone consumer sentimentimproved from the prior month, sentiment figures remain deep in negative territory. Few expected the ECB to actthis morning, but many traders expected the ECB to leave the promise of support in the headlines. In the nearterm, it is possible that the March Euro could see some support from a long term up trend channel support linethat was drawn off the July and November key lows. That up trend channel support line comes in at 1.3553 todayand rises to 1.3559 on Friday. The trend is down, sell minor strength this morning.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may be drying upsoon. The market’s close below the 9-day moving average is an indication the short-term trend remains negative.The swing indicator gave a moderately negative reading with the close below the 1st support number. The nextdownside objective is now at 135.0050. The next area of resistance is around 136.1300 and 136.6450, while 1stsupport hits today at 135.3100 and below there at 135.0050.