While the June Euro managed a fresh new high for the move, it was unable to hold that rally this morning.Seeing Euro zone PPI decline 0.2% in February is undermining, especially since that was the biggest year overyear drop in nearly 5 years. While traders don’t expect to see the ECB ease this week, the looming meeting onThursday and the presence of an active US scheduled report slate might shift control of the Euro in favor of thebear camp. There might be little in the way of solid support in the June Euro until the 1.3747 level and perhapsnot until the 1.3727 level.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. The market’s closeabove the 9-day moving average suggests the short-term trend remains positive. With the close higher than thepivot swing number, the market is in a slightly bullish posture. The next downside target is 137.4600. The nextarea of resistance is around 138.1600 and 138.3800, while 1st support hits today at 137.7000 and below there at137.4600.