The Euro is fighting a recovery in the Dollar this morning and news of an improvement in Italian consumersentiment and an abatement of emerging market fears have done little to cushion the Euro against downsidelosses on the charts. While Spanish officials overnight saw a return to positive growth that news was generallydiscounted, perhaps because currency market sentiment seems to be set on factoring in another tapering movefrom the US on Wednesday. Therefore near term downside targeting in the Euro is seen at 1.3574 which alsohappens to be the 100 day moving average. To turn sentiment back toward the bull camp probably requires anearly recovery today back above the 1.3666 level.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher priceaction. A positive signal for trend short-term was given on a close over the 9-bar moving average. It is a slightlynegative indicator that the close was under the swing pivot. The near-term upside objective is at 137.4325. Thenext area of resistance is around 137.0450 and 137.4325, while 1st support hits today at 136.3950 and belowthere at 136.1325.