The Euro hasn’t been able to garner a definitive windfall from the improvement in overall macro economicconditions this week and that is probably the result of the sharp run up in the Euro from last week’s lows. In otherwords, the Euro somewhat shifted into a quasi safe haven instrument last week and with safe haven sentiment onthe decline today, the Euro has become a little vulnerable. In short, the January and February rally in the Euro of2 points has left the Euro overvalued and in need of very impressive data to avoid some measure of correctiveaction.
Technical Outlook: The close below the 40-day moving average is an indication the longer-term trend hasturned down. Positive momentum studies in the neutral zone will tend to reinforce higher price action. A positivesignal for trend short-term was given on a close over the 9-bar moving average. The market could take on adefensive posture with the daily closing price reversal down. The market’s close below the pivot swing number isa mildly negative setup. The near-term upside objective is at 137.0000. The next area of resistance is around136.6300 and 137.0000, while 1st support hits today at 136.0900 and below there at 135.9200.