Another new high for the move in the Euro is generally the result of slack US data and the prospects formore slack US data in the hours ahead and that should leave the Euro bulls with the edge. Surprisingly the call fora sharp wage increase by German workers appears to be providing a lift to the Euro, as some economists thinkthat could countervail the threat of deflation that has plagued the Euro for months. While the Euro is overboughttechnically from the recent gains, the economic report slate this morning should see the March Euro make anattempt at the 1.38 level. Support in the March Euro moves up to 1.3740.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend to support reversalaction if it occurs. A positive signal for trend short-term was given on a close over the 9-bar moving average.Since the close was above the 2nd swing resistance number, the market’s posture is bullish and could see moreupside follow-through early in the session. The near-term upside objective is at 138.2049. The next area ofresistance is around 137.9399 and 138.2049, while 1st support hits today at 137.1800 and below there at136.6850.