The Euro is garnering some favor this morning in the wake of a slight faltering in the Dollar. Perhaps theEuro is drafting some lift from generally up-beat German manufacturing output in February. Declining Euro zoneyields look to limit the upside in the Euro, which in turn might be winning by default against the US Dollar.Significant resistance is seen at 1.3727 off the late March consolidation zone. The Commitments of TradersFutures and Options report as of April 1st for Euro showed Non-Commercial traders were net long 34,606contracts, a decrease of 5,728 contracts. The Commercial traders were net short 14,468 contracts, a decrease of6,824 contracts. The Non-reportable traders were net short 20,138 contracts, an increase of 1,098 contracts.Non-Commercial and Non-reportable combined traders held a net long position of 14,468 contracts. Thisrepresents a decrease of 6,826 contracts in the net long position held by these traders.
Technical Outlook: The market back below the 60-day moving average suggests the longer-term trendcould be turning down. Momentum studies are declining, but have fallen to oversold levels. The close below the9-day moving average is a negative short-term indicator for trend. The market tilt is slightly negative with the closeunder the pivot. The next downside objective is 136.3850. The next area of resistance is around 137.2800 and137.5850, while 1st support hits today at 136.6800 and below there at 136.3850.