With the Euro short term technically and fundamentally overbought into last week’s highs and a shift in theUkrainian situation, the bear camp looks to have a slight edge. Another element playing into the hands of the bearcamp is softer than expected Euro zone producer prices for January, but that potentially undermining news wascountervailed by impressively strong German plant and machinery orders in January. The key to the Euro todaywill be lower tier US economic information, as slightly positive readings from the US and more progressive gainsin equities, could leave the Euro in its pattern of lower highs and lower lows. Keep in mind, the March Euro isroughly 125 to 150 points above last week’s lows and a large portion of that run up was off slack US data.
Technical Outlook: The daily stochastics gave a bearish indicator with a crossover down. Stochasticsturning bearish at overbought levels will tend to support lower prices if support levels are broken. A positive signalfor trend short-term was given on a close over the 9-bar moving average. The market tilt is slightly negative withthe close under the pivot. The next downside objective is now at 136.7975. The next area of resistance is around137.6750 and 138.1375, while 1st support hits today at 137.0050 and below there at 136.7975.