The Euro has mostly favored negative territory this morning as the currency probably became short termoverbought into the highs yesterday. As suggested in Dollar coverage, a somewhat deflationary German PPIresult overnight probably gave the bear camp some assistance this morning. The Euro is also being underminedby comments from EU officials that the Euro zone is only slowly exiting the crisis and therefore the Euro is seeingpressure from a lack of confidence and from residual deflationary evidence. The September Euro does seem tohave initial support this morning at even numbers of 1.3600.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce a move higherif resistance levels are taken out. The market’s close above the 9-day moving average suggests the short-termtrend remains positive. The close over the pivot swing is a somewhat positive setup. The next upside objective is136.7275. The next area of resistance is around 136.3850 and 136.7275, while 1st support hits today at 135.7950and below there at 135.5475.