Talks from the Germany’s Bundesbank/ECB Council member Weidmann overnight has rekindledpressure on the Euro, as he suggested the central bank is entering unchartered waters with measures tostimulate the economy and battle nagging deflationary pressures. In fact Weidmann suggested the ECB isattempting to avoid entrenched Japanese style deflation, as the ECB is running out of tools to stimulate theeconomy. Therefore the path of least resistance in the Euro remains down with near term targeting seen down atthe old low of 1.3502 and then not until the 1.3483 level. In order to turn the tide in the Euro, probably requires arecovery back above 1.360 or a significantly better than expected economic reading from the Euro zone.
Technical Outlook: Daily stochastics are showing positive momentum from oversold levels, which shouldreinforce a move higher if near term resistance is taken out. A negative signal for trend short-term was given on aclose under the 9-bar moving average. The close below the 1st swing support could weigh on the market. Thenear-term upside objective is at 136.9575. The next area of resistance is around 136.3550 and 136.9575, while1st support hits today at 135.4850 and below there at 135.2175.