While the Euro appears to be undermined by a surprise slide in Euro zone consumer confidence for themonth of June, the currency doesn’t appear to be poised to turn off its gentle upward slope on the charts. Uptrendchannel support in the September Euro is seen today at 1.3598 and that support rises to 1.3606 onMonday. Even more surprising is the Euro has managed to remain in positive ground this morning, despite dismalFrench growth readings but that could be the result of a surprise rise in Italian business confidence to a fresh 3year high. In conclusion, news flow for the Euro overnight showed slightly more positive news than negativenews. While the Euro might show a minor dip into US scheduled data later this morning, we see no reason to callfor an end to the upward bias in the Euro today.
Technical Outlook: A positive indicator was given with the upside crossover of the 9 and 18 bar movingaverage. Momentum studies are trending higher from mid-range, which should support a move higher ifresistance levels are penetrated. The market’s close above the 9-day moving average suggests the short-termtrend remains positive. The market’s close below the pivot swing number is a mildly negative setup. The nextupside target is 136.7950. The next area of resistance is around 136.4800 and 136.7950, while 1st support hitstoday at 135.8200 and below there at 135.4750.