While the Euro might be deriving some lift from news of a current account surplus for January, it could bedifficult for the Euro to forge significant gains today, without positive economic readings. The Euro might also becapped off by any talk of further sanctions against Russia, as additional Russian retaliation might disrupt naturalgas and energy supplies to key Euro zone trading partners. It is also possible that seeing EU officials (not USofficials) leading the sanctions threat against Russia, could mean Russia will retaliate with more EU centric actsinstead of US based sanctions. Critical support in the June Euro is seen at 1.3764 but pushed into the markettoday, we would favor the downside in the Euro into the US Fed speeches.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a move lower ifsupport levels are taken out. The close below the 18-day moving average is an indication the intermediate-termtrend has turned down. It is a slightly negative indicator that the close was under the swing pivot. The nextdownside target is 136.8925. The next area of resistance is around 138.2550 and 138.8325, while 1st support hitstoday at 137.2850 and below there at 136.8925.