The Euro reversed course overnight and has violated a series of close-in support points on the charts.Overnight data flow from the Euro zone was mixed with French data softer than expected and German datastrong enough to provide some cushion to Euro zone economic expectation. In fact, German Business Activityreadings reached fresh multi year highs and that fosters ideas that the recovery in the Euro zone is stillsustainable. However, the Euro was priced for perfection and a measure of classic technical balancing couldeasily knock the March Euro back down to 1.3673. A normal correction of the February rally could target an evenlower retracement of 1.3659.
Technical Outlook: Rising stochastics at overbought levels warrant some caution for bulls. A positivesignal for trend short-term was given on a close over the 9-bar moving average. The downside closing pricereversal on the daily chart is somewhat negative. The market’s close below the pivot swing number is a mildlynegative setup. The near-term upside objective is at 137.8750. The next area of resistance is around 137.5400and 137.8750, while 1st support hits today at 137.0600 and below there at 136.9150.