Comments from EU officials that the Euro was over-valued, combined with some slack German businessconfidence readings overnight leaves the Euro in a vulnerable position today. Reports that the situation in theCrimea was injuring sentiment in the German business sector, also suggests the Euro might remain underpressure as long as Russian troops remain poised on the border. The best hope of a recovery in the Euro today,might be seen in the aftermath of the US residential home sales release.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lower especially ifsupport levels are taken out. The cross over and close above the 18-day moving average is an indication theintermediate-term trend has turned positive. The outside day up and close above the previous day’s high is apositive signal. Since the close was above the 2nd swing resistance number, the market’s posture is bullish andcould see more upside follow-through early in the session. The next downside target is now at 137.0925. The nextarea of resistance is around 138.9450 and 139.4324, while 1st support hits today at 137.7750 and below there at137.0925.