As suggested in Dollar coverage Euro zone data overnight left a lot to be desired as April ConsumerConfidence fell for the first time in a year and Industrial confidence also declined. However, the Euro saw somesupport from hints from Draghi that the ECB wasn’t overly compelled to react to deflationary threats. ApparentlyUkrainian tensions have been weighing on sentiment in the Euro zone, especially with the latest round ofsanctions increasing the prospects of a backlash from Russia in the form of restricted energy shipments.However, the Euro doesn’t appear to be undermined on its charts in the face of the slack data and the Euro alsodoesn’t seem to be fearful of hawkish dialogue potential from the US Fed directly ahead. In short, the bulls havecontrol but they are fighting an uphill fundamental battle of headlines. Technically the trend remains up but we willbecome an interested seller of the June Euro on a rally back above 1.3910.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce a move higherif resistance levels are taken out. A positive signal for trend short-term was given on a close over the 9-barmoving average. The outside day up is somewhat positive. A positive setup occurred with the close over the 1stswing resistance. The next upside target is 139.1350. The next area of resistance is around 138.8299 and139.1350, while 1st support hits today at 138.1700 and below there at 137.8150.