Even the Euro is a bit off balance this morning as fears of global economic slowing have left it out of favor.In fact, with the exception of the Yen, the currency markets in general are not seeing flight to quality inflows fromcurrent world events, as safe haven interest appears to be flowing toward gold. With the Euro sitting near theupper end of the last 5 months trading range and the Euro recently benefiting from improved macro economicexpectations, it is not surprising to see the Euro retrench. With Euro zone Industrial output contracting by 0.2%overnight and that reading the 2nd straight monthly contraction, the Euro might be seeing long liquidation offeconomic disappointment. Initial support is seen down at 1.3843 and then not until the 1.3834.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory, so somecaution is warranted. The close above the 9-day moving average is a positive short-term indicator for trend. Themarket tilt is slightly negative with the close under the pivot. The near-term upside target is at 139.0600. The nextarea of resistance is around 138.8600 and 139.0600, while 1st support hits today at 138.4000 and below there at138.1400.