Surprisingly the Euro is tracking higher today in the face of revived Euro zone deflation fears. With theEuro rising and facing potentially positive US scheduled data flows later this morning, we have to think that earlygains in the Euro might be reversed. Perhaps the Euro is seeing some short covering off a lack of escalation inthe Ukraine tensions overnight, as the trade yesterday was expecting a quick backlash from Russia in the wake ofthe offensive moves from Ukrainian forces. Pushed into the market we would sell the rally this morning looking fora modest setback through the US data window.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher price action.A positive signal for trend short-term was given on a close over the 9-bar moving average. It is a slightly negativeindicator that the close was under the swing pivot. The near-term upside objective is at 138.5350. The next areaof resistance is around 138.3199 and 138.5350, while 1st support hits today at 137.8800 and below there at137.6550.