While it might seem like the Euro is winning by default, the reality is the trade sees progress towardrecovery in the Euro zone to be more definitive than in the US. Perhaps the Euro zone is drafting lift off stellareconomic sentiment toward the UK and perhaps the Euro is primarily deriving its upward momentum on the backof the forward progress in the German economy. Apparently the trade is largely unconcerned about the potentialspillover impact from Russian retaliation to additional sanctions like a shut-down of natural gas flows. Don’t fightthe near term up-trend in the Euro until Wednesday afternoon. Near term resistance moves up to 1.3910 andsupport rises today to 1.3849. The Commitments of Traders Futures and Options report as of April 22nd for Euroshowed Non-Commercial traders were net long 25,781 contracts, a decrease of 1,994 contracts. The Commercialtraders were net short 3,831 contracts, a decrease of 2,859 contracts. The Non-reportable traders were net short21,951 contracts, an increase of 866 contracts. Non-Commercial and Non-reportable combined traders held a netlong position of 3,830 contracts. This represents a decrease of 2,860 contracts in the net long position held bythese traders.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce a move higherif resistance levels are taken out. The market’s short-term trend is positive on the close above the 9-day movingaverage. It is a mildly bullish indicator that the market closed over the pivot swing number. The near-term upsidetarget is at 138.5850. The next area of resistance is around 138.4400 and 138.5850, while 1st support hits todayat 138.2000 and below there at 138.1050.