The Euro remains under the negative spell of easing prospects from next week’s meeting and somewhatdisappointing data from German retail sales overnight leaves the edge with the bear camp. With the trade seeingfears of deflation surface with regularity this week that has to increase the odds of further easing ahead. Top ofthe downtrend channel and resistance today is seen at 1.3626. Unfortunately support in the June Euro isn’t seenuntil the recent quasi double low down around 1.3586.
Technical Outlook: The daily stochastics have crossed over up which is a bullish indication. Thestochastics indicators are rising from oversold levels, which is bullish and should support higher prices. Themarket’s short-term trend is negative as the close remains below the 9-day moving average. The close over thepivot swing is a somewhat positive setup. The near-term upside target is at 136.4549. Some caution in pressingthe downside is warranted with the RSI under 30. The next area of resistance is around 136.2499 and 136.4549,while 1st support hits today at 135.8500 and below there at 135.6550.