The Euro this morning sits just under a critical pivot point on the charts of 1.36 and it was able to make ahigher high overnight. However, Euro zone economic data was confusing overnight with weaker in German ZEWexpectations figures and a significant jump in current condition results. However, the mixed ZEW figures wereprobably countervailed by a modest rise in Euro zone 1st quarter labor costs. With interest seemingly resurfacingfor the Dollar it is possible that the Euro is set to lose ground into the FOMC statement and Press conference onWednesday afternoon. Initial resistance is seen at even numbers of 1.3600 and support might not be seen untilthe 1.3525 area.
Technical Outlook: The crossover up in the daily stochastics is a bullish signal. Daily momentum studiesare on the rise from low levels and should accelerate a move higher on a push through the 1st swing resistance.The market’s close below the 9-day moving average is an indication the short-term trend remains negative. It is aslightly negative indicator that the close was lower than the pivot swing number. The next upside target is135.8924. The next area of resistance is around 135.6350 and 135.8924, while 1st support hits today at 135.1250and below there at 134.8725.