To start, the March Euro has seemingly forged a quasi double high up at 1.3773 and given the initialweakness in the Dollar today the path of least resistance in the Euro is pointing upward. Perhaps the Euro isseeing some additional lift from German IFo readings, even if Euro zone January CPI data rekindled somedeflationary concerns again in the Euro zone. Up trend channel support in the March Euro is seen today at 1.3703and that support line rises to 1.3724 on Tuesday. Some might suggest that weak US data later this morning willadd to the upward bias in the Euro to start today. The Commitments of Traders Futures and Options report as ofFebruary 18th for Euro showed Non-Commercial traders were net long 5,194 contracts, an increase of 14,232contracts which represents a change from a net short to net long position. The Commercial traders were net long13,962 contracts, a decrease of 16,028 contracts. The Non-reportable traders were net short 19,156 contracts, adecrease of 1,795 contracts. Non-Commercial and Non-reportable combined traders held a net short position of13,962 contracts. This represents a decrease of 16,027 contracts in the net short position held by these traders.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. Themarket’s close above the 9-day moving average suggests the short-term trend remains positive. With the closehigher than the pivot swing number, the market is in a slightly bullish posture. The near-term upside objective is at137.9125. The next area of resistance is around 137.6650 and 137.9125, while 1st support hits today at 137.0950and below there at 136.7725.