While the Euro is holding around unchanged levels, the track of the Euro is likely to favor the downside inthe aftermath of the ECB meeting where the threat of deflation is expected to be left in place by inaction. In otherwords, acknowledging the potential threat of deflation and making no changes because of positive growth ishardly a combination capable of sparking an influx of buyers into the Euro. In fact, seeing German Industrialorders decline overnight seems to undermine the growth expectation and that in combination with a modestdecline in US claims later this morning, might press the March Euro back toward consolidation support down at1.3493.
Technical Outlook: A negative indicator was given with the downside crossover of the 9 and 18 barmoving average. Daily stochastics are trending lower but have declined into oversold territory. The close belowthe 9-day moving average is a negative short-term indicator for trend. It is a mildly bullish indicator that the marketclosed over the pivot swing number. The next downside target is 134.7350. The next area of resistance is around135.6500 and 135.8950, while 1st support hits today at 135.0700 and below there at 134.7350.