Another higher high for the move in the Euro was probably the result of the better than expected Eurozone Industrial production result from November. Tempering the Industrial production benefit to the Euro is thefact that the prior month’s data was revised from a slight positive to a slight negative. The euro was given anadded boost by upbeat Euro zone growth talk from an ECB official who suggested that growth might surprise thetrade on the upside this year. With the Euro settling in well above its 50 day moving average and macro economicsentiment toward the US eroding, it is possible that the March Euro might be poised to fill an old gap up at 1.3727to 1.3742.
Technical Outlook: Daily momentum studies are on the rise from low levels and should accelerate a movehigher on a push through the 1st swing resistance. A positive signal for trend short-term was given on a closeover the 9-bar moving average. With the close higher than the pivot swing number, the market is in a slightlybullish posture. The next upside target is 137.1500. The next area of resistance is around 136.9700 and137.1500, while 1st support hits today at 136.4900 and below there at 136.1900.