Technical damage on the Euro charts overnight would seem to set the stage for more downside actionahead, especially if US data later this morning shows even minimally positive results. Cushioning the Euro againstthe downside is news that the Euro zone posted a larger trade surplus than was expected in November of 2013.The Euro is also seeing some selling pressure from news that German growth for all of 2013 was slower thanexpected and that it continued to show residual damage from the Euro zone financial crisis. As suggested in theDollar coverage this morning, there seems to be a pattern of spin in place that puts the best light on US data flowsand in turn discounts Euro zone data points. In short, bearish sentiment has an edge in the Euro and a return tothe early January lows down at 1.3547 might be a fairly easy task in the coming trading sessions.
Technical Outlook: Momentum studies are rising from mid-range, which could accelerate a move higher ifresistance levels are penetrated. The market now above the 18-day moving average suggests the intermediatetermtrend has turned up. The close over the pivot swing is a somewhat positive setup. The next upside target is137.2675. The next area of resistance is around 137.0250 and 137.2675, while 1st support hits today at 136.5150and below there at 136.2475.