The Euro overnight has not clawed out a higher high on the charts as the trade is somewhat discouraged with the magnitude of the ECB stimulus and it is also possible that some Euro longs are afraid of some freshselling in the Euro, in the wake of US scheduled data later this morning. Cushioning the Euro this morning issurprising improvement in Italian October business confidence readings which some might consider the weakestlink in the Euro zone recovery effort. Up-trend channel support today is seen at 1.2680 in the December Euro andthere would appear to be significant overhead resistance in the Euro from the mid-October consolidation zone.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a move lower ifsupport levels are taken out. The market now above the 18-day moving average suggests the intermediate-termtrend has turned up. With the close over the 1st swing resistance number, the market is in a moderately positiveposition. The next downside target is now at 126.4400. The next area of resistance is around 127.3499 and127.6000, while 1st support hits today at 126.7700 and below there at 126.4400.