In addition to a slightly positive start in the Dollar, the Euro is seeing some fresh fundamental pressurefrom rising concerns toward bad loans in Spain and signs that the French economy is destined to lag behind therest of the Euro zone in recovery efforts. Another issue that might undermine the Euro today is news overnightthat Italy and France saw yet another annual decline in new car registrations, but the decline in registrations wasthought to be shrinking. Pushed into the market we would be short the March Euro looking for a downsidebreakout in the wake of US data this morning and potential a return to the early January lows of 1.3547.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. The closebelow the 9-day moving average is a negative short-term indicator for trend. With the close higher than the pivotswing number, the market is in a slightly bullish posture. The next downside target is 135.4900. The next area ofresistance is around 136.5299 and 136.8500, while 1st support hits today at 135.8500 and below there at135.4900.