The Euro has forged another higher high for the move and in turn has reached the highest level sinceJanuary 29th. The strength in the Euro is seemingly the result of hope that the US Fed might relent withconsistent monthly tapering efforts. In fact, seeing the US Fed pause would dramatically reduce the threat ofemerging market fears and that in turn could boost the Euro and Pound off a noted improvement in globaleconomic sentiment. Higher equities are another force providing lift to the Euro this morning, as positive equitiescombined with positive UK retail sales news leaves the impression of a risk-on environment in place. Near termupside resistance is seen up at 1.3699.
Technical Outlook: The market now above the 40-day moving average suggests the longer-term trend hasturned up. Positive momentum studies in the neutral zone will tend to reinforce higher price action. The market’sshort-term trend is positive on the close above the 9-day moving average. The close over the pivot swing is asomewhat positive setup. The near-term upside target is at 136.7275. The next area of resistance is around136.6149 and 136.7275, while 1st support hits today at 136.2850 and below there at 136.0675.