The Euro comes under additional liquidation pressure from the April German ZEW figures but the Euro isprobably seeing some added pressure from classic technical selling on the violation of critical chart support levels.Under the current combination of EU easing prospects, a US macro-economic differential edge and with lingeringfears of exploding natural gas prices into Eastern Europe, we have to leave the bias pointing downward in theJune Euro. Near term downside targeting in the June Euro is seen at 1.3750 and perhaps 1.3700 if US datacontinues to come in positive.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. The closeabove the 9-day moving average is a positive short-term indicator for trend. The close below the 2nd swingsupport number puts the market on the defensive. The near-term upside objective is at 138.8250. The next areaof resistance is around 138.4699 and 138.8250, while 1st support hits today at 137.9100 and below there at137.7050.