Favorable German unemployment results were unfortunately offset by sharp regional price measure declines in Germany, talk of fresh sanctions against Russia and signs that the new leadership in Greece intends to challenge bailout agreements that were originally agreed to by elected Greek officials. Down-trend channel resistance in the March Euro is seen at 1.1318 today and that resistance falls down to 1.1248 on Friday morning. One might also expect to see some additional knock on selling of the Euro in the wake of US scheduled data flows later this morning.
Technical Outlook: The stochastics indicators are rising from oversold levels, which is bullish and should support higher prices. A negative signal for trend short-term was given on a close under the 9-bar moving average. The market’s close below the pivot swing number is a mildly negative setup. The next upside objective is 114.1450. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area of resistance is around 113.3900 and 114.1450, while 1st support hits today at 112.3700 and below there at 112.1050.