Positive economic talk from an EU official overnight on improvements in the European loan market,combined with sagging economic views toward the US and softer inflation readings from China have given theEuro a fresh bid. Apparently seeing the prospect of Chinese easing and lingering uncertainty in the US recoveryhas given the Euro cover as it maintains an easy money stance. A pattern of higher lows and the potential for theUS Fed to maintain low rates in dialogue later today should leave the bull camp with an edge. Up-trend channelsupport in the September Euro is seen today at 1.3587 but that support line rises to 1.3596 by this Friday.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lowerprice action. The market now above the 18-day moving average suggests the intermediate-term trend has turnedup. Market positioning is positive with the close over the 1st swing resistance. The next downside objective is nowat 98.06. The next area of resistance is around 98.69 and 98.83, while 1st support hits today at 98.31 and belowthere at 98.06.