Weakness in the Dollar, favorable German Manufacturing orders and expectations for more slack datafrom the US directly ahead have helped the Euro hold up against talk that the EU might need to offer up somefresh stimulus to countervail deflationary threats and to support the Euro zone economy against the lingeringemerging market threat from events in the Ukraine. In the end, the flow of data from the US over the coming 36hours should be enough to leave favor with the Bull camp in the Euro. Critical support moves up to 1.3721 andthere might not be much in the way of resistance seen until the 1.3773 level. The biggest drag against the bullcase in the Euro this morning is IMF calls for the EU to take action against deflationary threats.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lower especially ifsupport levels are taken out. The close below the 9-day moving average is a negative short-term indicator fortrend. It is a slightly negative indicator that the close was under the swing pivot. The next downside objective isnow at 136.8775. The next area of resistance is around 137.5450 and 137.7375, while 1st support hits today at137.1150 and below there at 136.8775.