The March Euro starts the Friday trade in the lower half of the prior session’s range and it would not seemlike it was able to benefit from slack UK retail sales data. With expectations calling for slack US existing homesales data later this morning, the weaker action in the Euro has to be discouraging to the Euro bulls. With the USTreasury Secretary suggesting that the ECB needs to do more to stimulate its economy, one might suggest thatthe path of least resistance in the March Euro is set to remain down. However, traders might want to wait for a USexisting home sales inspire bounce in the Euro to get short.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. Themarket’s close above the 9-day moving average suggests the short-term trend remains positive. The market tilt isslightly negative with the close under the pivot. The next upside target is 138.0250. The next area of resistance isaround 137.6100 and 138.0250, while 1st support hits today at 136.7900 and below there at 136.3850.