A fresh upside breakout on daily and weekly charts overnight, the Euro looks to continue to win by default.In fact, the Euro has managed to charge higher despite ECB talk of action if real interest rates fail to soften. Infact, the Euro has also continued to rise in the face of news that they continue to prepare for sanctions againstRussia. In other words, the trade thinks the Dollar might be targeted by the Russians in the event of sanctions, butthe trade doesn’t seem to be fearful of the Euro being targeted by Russia in the event sanctions are put in place.Don’t fight the technical trend but realize that the bull camp doesn’t exactly have an expansive fundamental case.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory, so somecaution is warranted. The close above the 9-day moving average is a positive short-term indicator for trend. Themarket’s close above the 2nd swing resistance number is a bullish indication. The near-term upside target is at139.6450. The market is becoming somewhat overbought now that the RSI is over 70. The next area ofresistance is around 139.4200 and 139.6450, while 1st support hits today at 138.7000 and below there at138.2050.