Without the looming threat of taper from the US, the Euro would probably be enjoying gains in the wake ofanother impressive German Consumer sentiment reading overnight. The Euro might see some minor resistancefrom news that Euro zone money supply has continued to rise but the trade is likely to be restrained because ofthe looming Fed statement. In the end, seeing German consumer sentiment rise to the highest level in 6 years,should underpin the Euro through the critical Fed window later today. Up trend channel support is seen down at1.3614 but the 100 day moving average is seen down at 1.3608.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend to support reversalaction if it occurs. The market’s close above the 9-day moving average suggests the short-term trend remainspositive. It is a slightly negative indicator that the close was lower than the pivot swing number. The next upsideobjective is 137.2300. The next area of resistance is around 136.9800 and 137.2300, while 1st support hits todayat 136.3800 and below there at 136.0300.