While the Euro has managed to bounce off the prior session’s lows overnight, the charts in the Euro don’tappear to have improved technically. With Euro zone inflation readings soft overnight and negative fund managerviews toward Europe floated on business channels this morning, the fundamental bias in the Euro looks to remaindown. Euro bulls have to hope that US data is muted as even slightly positive US data later this morning could bejustification for the March Euro to fall quickly back to and below the January lows of 1.3547.
Technical Outlook: The close below the 60-day moving average is an indication the longer-term trend hasturned down. A bearish signal was triggered on a crossover down in the daily stochastics. Daily stochasticsdeclining into oversold territory suggest the selling may be drying up soon. The intermediate trend has turneddown with the cross over back below the 18-day moving average. There could be some early pressure todaygiven the market’s negative setup with the close below the 2nd swing support. The next downside target is135.1950. The next area of resistance is around 136.5200 and 137.1150, while 1st support hits today at 135.5600and below there at 135.1950.