The Euro bulls have to be cheered by the capacity to bounce today in the face of fresh ECB easing hints.In fact, the Euro has managed to track higher despite news that Euro zone March Industrial output declinedrelative to last month and last year. Therefore we have to suggest that the Euro has found a value zone on thecharts around the 1.3697 level. To send the Euro cascading lower probably requires a definitive up-tick in USscheduled data and or more significant weakness in Euro zone data. The bulls have an edge but the June Euromight meet some initial resistance at 1.3743.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may be drying upsoon. The close below the 9-day moving average is a negative short-term indicator for trend. The defensivesetup, with the close under the 2nd swing support, could cause some early weakness. The next downside targetis now at 136.3125. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area ofresistance is around 137.4150 and 137.9725, while 1st support hits today at 136.5850 and below there at136.3125.