A definitive range up extension this morning suggests that the bull camp has retained the edge that wasregained last week! As suggested in Dollar coverage this morning typically bearish news flow has not dampenedthe upward tilt in the Euro, which apparently means that the market has all but ignored the IMF calls for the ECBto take even more action to head off deflationary pressures in the Euro zone. There might be little resistance inthe September Euro until the 50 day moving average up at 1.3725. A closer-in target in the September Euro isseen at the early June highs of 1.3679.
Technical Outlook: The stochastics indicators are rising from oversold levels, which is bullish and shouldsupport higher prices. The close above the 9-day moving average is a positive short-term indicator for trend. Apositive setup occurred with the close over the 1st swing resistance. The near-term upside target is at 136.4800.Consider buying pull-backs since daily studies are bullish. The next area of resistance is around 136.2600 and136.4800, while 1st support hits today at 135.6400 and below there at 135.2400.