The Euro reached a rather expensive level on the charts yesterday and is showing some retrenchmentaction in the early going today. However, the upbeat economic track toward the Euro zone was dented overnightby a setback in German March manufacturing data, but that miss was blamed on the uncertain situation inUkraine. However, we can’t argue against another thrust higher on the charts in the coming 24 hours, if US initialclaims on Thursday fail to fall sharply. Up-trend channel support in the June Euro is seen today down at 1.3826and that could be a significant pivot point, but that trend line support moves up to 1.3840 by Friday.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory, so somecaution is warranted. The market’s short-term trend is positive on the close above the 9-day moving average.Since the close was above the 2nd swing resistance number, the market’s posture is bullish and could see moreupside follow-through early in the session. The next upside objective is 139.9875. The market is approachingoverbought levels with an RSI over 70. The next area of resistance is around 139.6850 and 139.9875, while 1stsupport hits today at 138.8950 and below there at 138.4075.