ro zone data released overnight was somewhat countervailing but it was apparently accepted asbearish by the trade as the Euro is approaching the January lows early in the Wednesday trade. Seeing theNovember jobless rate in the Euro zone remain at 12.1% was discouraging enough for the trade to discount a risein German manufacturing orders and discount a sharp surge in Euro zone retail sales figures. In conclusion, themarket had two supportive reports and an unchanged employment result and it favored the unchangedunemployment result. Therefore the trend is pointing downward with initial support and a target seen down at1.3571, with even lower support and targeting seen down at 1.3530. On a return to the 1.3515 level, we will lookto get long the Euro for a position play as German exports rose for the 4th straight month and by the time Eurozone unemployment starts to improve, we think the Euro will have already recovered in anticipation of a recoveryin the Euro zone economy.
Technical Outlook: The market back below the 60-day moving average suggests the longer-term trendcould be turning down. Momentum studies are still bearish but are now at oversold levels and will tend to supportreversal action if it occurs. The market’s close below the 9-day moving average is an indication the short-termtrend remains negative. The market could take on a defensive posture with the daily closing price reversal down.It is a slightly negative indicator that the close was under the swing pivot. The next downside target is now at135.6100. The next area of resistance is around 136.4600 and 136.8100, while 1st support hits today at 135.8600and below there at 135.6100.