The Euro continues to be the prime benefactor of the dovish Fed meeting-minutes release. Perhaps theEuro is being lifted by positive debt demand news from Greece but that positive influence was countered by newsof softer economic readings from Italy and deflationary data from France. The path of least resistance is up from atechnical perspective but we feel the Euro is running thin on fundamental justification for further gains. Initialsupport moves up to 1.3850 and a move to 1.39 ahead would begin to increase our desire to get short the Euro.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce a move higherif resistance levels are taken out. The intermediate trend could be turning up with the close back above the 18-day moving average. A positive setup occurred with the close over the 1st swing resistance. The next upsidetarget is 139.1650. The next area of resistance is around 138.9100 and 139.1650, while 1st support hits today at138.0900 and below there at 137.5250.