While the Euro doesn’t look to be in a definitive upward track on the charts, mostly positive action inEuropean equities might provide a cushion for the Euro to start the Wednesday trade. Euro bulls might also seesome minimal lift in the wake of soft US data points, but seeing the US recovery as suspect, is hardly long termbeneficial to the Euro. However, the Euro did see some up beat economic news overnight, from a Januarymanufacturing result, which posted the strongest reading in over 2 years. Limiting the upward track in the Euro inthe early going is slack Services data from Germany and disappointment from Euro zone January retail salesresults overnight. Critical support in the March Euro is seen at 1.3493 and then again down at 1.3484. In order toput the bull camp in definitive control today, probably requires an early rise above a key pivot point of 1.3539.
Technical Outlook: The moving average crossover up (9 above 18) indicates a possible developing shorttermuptrend. Momentum studies are still bearish but are now at oversold levels and will tend to support reversalaction if it occurs. The market’s close below the 9-day moving average is an indication the short-term trendremains negative. The downside closing price reversal on the daily chart is somewhat negative. The market tilt isslightly negative with the close under the pivot. The next downside objective is 134.6900. The next area ofresistance is around 135.3700 and 135.6100, while 1st support hits today at 134.9100 and below there at134.6900.