The losses on the Euro chart this week have been significant this week and the economic report flow fromEurope overnight would seem to have left the Euro vulnerable to even more declines ahead. However, the MarchEuro was closing in a potentially significant consolidation support down at 1.35 and the fortunes of the Dollar wereseemingly reversed this morning by accelerating declines in US equities. From the recent high to the 1.35 level,the March Euro declined by nearly 250 points in just 6 trading sessions and that left the Euro short termtechnically oversold. While the fundamental situation hardly argues for a significant recovery ahead, if US dataappears to be even slightly weak today that could help the March Euro rebound toward resistance levels up at1.3583.
Technical Outlook: The market back below the 60-day moving average suggests the longer-term trendcould be turning down. A positive indicator was given with the upside crossover of the 9 and 18 bar movingaverage. A crossover down in the daily stochastics is a bearish signal. Declining momentum studies in the neutralzone will tend to reinforce lower price action. The close below the 18-day moving average is an indication theintermediate-term trend has turned down. The market is in a bearish position with the close below the 2nd swingsupport number. The next downside objective is 134.5675. The next area of resistance is around 136.1249 and136.9874, while 1st support hits today at 134.9150 and below there at 134.5675.