Surprisingly the Euro is holding within close-proximity to its recent highs despite fresh slowing concerns from the German economy overnight. In fact, the Euro remains somewhat well bid despite talk of fresh stimulusfrom the German central bank and more importantly in the face of downward global growth revisions from the IMFyesterday. Unfortunately we don’t see classic fundamental reasoning for a key low in the Euro, but one might geta sense that technically the decline in the Euro has gotten ahead of reality.
Technical Outlook: Rising from oversold levels, daily momentum studies would support higher prices,especially on a close above resistance. The market’s short-term trend is positive on the close above the 9-daymoving average. The close over the pivot swing is a somewhat positive setup. The near-term upside objective isat 127.5150. The next area of resistance is around 127.1700 and 127.5150, while 1st support hits today at126.1900 and below there at 125.5550.