Euro zone PMI data has provided the Euro with a distinct lift and with a climb back above the 50 daymoving average in the March Euro this morning it is possible that a measure of technical stop loss buying will beseen in the Euro today. Near term upside targeting is seen up at 1.3676 and the surprise shift in macro economicfortunes catches the market by surprise. It is possible that the World Economic forum has made seemingly benignEuro zone data more significant but traders short the Euro, should at least wait for scheduled US data flowsbefore scrambling to the sidelines.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. A negative signalfor trend short-term was given on a close under the 9-bar moving average. The market could take on a defensiveposture with the daily closing price reversal down. The market’s close below the pivot swing number is a mildlynegative setup. The next downside target is now at 135.0150. The next area of resistance is around 135.7000and 136.0149, while 1st support hits today at 135.2000 and below there at 135.0150.