The Euro is back in favor as the trade has taken the latest cycle of global PMI results and has come to theconclusion that the Euro has a slight macro-economic edge. Key in the bullish tilt toward the Euro is German dataflows and reports that Euro zone budget deficits fell to 3% of GDP for 2013. One might also suggest the Eurobulls have the advantage of the charts, especially with a noted upside extension early this morning putting theEuro up to the highest level since April 17th. In short, the Euro partially wins by default and by the fact that overallglobal economic activity has set an extremely low bar. Support in the June Euro moves up to 1.3829 and theremight be little in the way of resistance seen until the 1.3864 level.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lower priceaction. The market’s short-term trend is negative as the close remains below the 9-day moving average. Theupside closing price reversal on the daily chart is somewhat bullish. It is a mildly bullish indicator that the marketclosed over the pivot swing number. The next downside objective is 137.6050. The next area of resistance isaround 138.2300 and 138.4450, while 1st support hits today at 137.8100 and below there at 137.6050.