Just as the Dollar needs stellar data to hold value, the Euro apparently needs next to nothing to catch abid. In fact, the Euro is on the rise this morning because of a slight reduction in Ukrainian tensions but limiting theupside track in the Euro is news of a contraction in German March PPI figures. We continue to think that the Eurois overvalued and that a return back above the 1.39 level in the days ahead will ultimately present a fresh sellingopportunity. For the time being, the US economy hasn’t shown enough forward momentum to break the back ofthe bull camp in the Euro and therefore a rise above 1.3917 is possible in the wake of US scheduled data flowslater this morning.
Technical Outlook: Momentum studies are rising from mid-range, which could accelerate a move higher ifresistance levels are penetrated. The close above the 9-day moving average is a positive short-term indicator fortrend. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The near-termupside objective is at 138.6575. The next area of resistance is around 138.3550 and 138.6575, while 1st supporthits today at 137.8850 and below there at 137.7175.