The Fed move and statements yesterday have temporarily punctured the Euro’s bullish facade. WithGerman February PPI coming in unchanged and the year over year change registering a decline of 0.9% andtherefore the overnight data flow from Europe appears to be adding into the downward march in the Euro. With asomewhat critical moving average violated and up trend channel support levels also pierced, the Euro looks toenter an important junction later this morning into and through US scheduled data flows. While a minor rise inclaims might provide a temporary lift to the Euro, seeing claims decline and or seeing other US data points comein positive, could set the stage for a slide in the June Euro down to 1.3722
Technical Outlook: The daily stochastics have crossed over down which is a bearish indication.Stochastics turning bearish at overbought levels will tend to support lower prices if support levels are broken. Anegative signal for trend short-term was given on a close under the 9-bar moving average. The close below the2nd swing support number puts the market on the defensive. The next downside target is now at 137.2525. Thenext area of resistance is around 138.9249 and 139.7525, while 1st support hits today at 137.6750 and belowthere at 137.2525.