The Euro is back in vogue again as the outlook toward the US economy is being downgraded and newsof a rise in Euro zone January jobless numbers was discounted. In fact, the trade overnight discounted joblessfigures and focused on “steady” inflation readings. In other words, the Euro was able to rally off a lack ofdeflationary data and that highlights an extremely low macro economic bar in the marketplace. It is also possiblethat the inflow into the Euro this morning was primarily the result of retail sales readings from Germany, whichposted the highest monthly tally since the sub prime crisis. In the end, a definitive fundamental and technicalfailure in the Dollar, gave rise to the fresh upside breakout in the Euro. Support in the Euro moves up to 1.3773and resistance might not be seen until the 1.3824 level.
Technical Outlook: Momentum studies are trending lower from high levels which should accelerate amove lower on a break below the 1st swing support. The close below the 9-day moving average is a negativeshort-term indicator for trend. The upside daily closing price reversal gives the market a bullish tilt. It is a mildlybullish indicator that the market closed over the pivot swing number. The next downside target is now at136.1450. The next area of resistance is around 137.5400 and 137.8250, while 1st support hits today at 136.7000and below there at 136.1450.