The Euro managed some fairly impressive action in the wake of the widely anticipated easing moves. However, underpinning the Euro this morning is a very impressive sweep of data from Germany and the Eurozone overnight. In fact, Spanish Industrial output rose at the fastest pace in “4 Years” and Spain was thought tobe a major trouble spot in the recent past! With a rise in German export data also adding into the Spanishperformance, the Euro starts the session with some positive steam. In the event that the US payrolls are a nonevent(meaning they meet expectations) that could leave the Euro on an upward track. In short, the Euro bullsprobably need to see US payrolls above 250,000 to relinquish control today. Critical support is seen at 1.3600 andthen again down at 1.3585.
Technical Outlook: Daily stochastics are showing positive momentum from oversold levels, which shouldreinforce a move higher if near term resistance is taken out. The cross over and close above the 18-day movingaverage indicates the intermediate-term trend has turned up. A positive signal was given by the outside day up.There could be more upside follow through since the market closed above the 2nd swing resistance. The neartermupside objective is at 137.9374. The next area of resistance is around 137.4749 and 137.9374, while 1stsupport hits today at 135.7850 and below there at 134.5575.