While the Euro is mostly unchanged to start today, we are a little surprised to see the currency avoid selling pressure in the wake of news that the ECB is studying additional quantitative easing methods using Publicsector bond buying. Cushioning the Euro is an upbeat prediction from the ECB that Eurozone banks might see anincrease in loan demand in the 4th quarter. While traders should expect increased volatility in the wake of theFOMC statement, we would like to buy a break in the Euro later today for a position play. Our pick for a near termlow is 1.2669 unless the US Fed is surprisingly hawkish and then the low might be as low as 1.2630 in the comingtrading sessions. Those that get long the Euro should not risk those positions below 1.2578 on a close basis.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lower priceaction. The close above the 9-day moving average is a positive short-term indicator for trend. With the close overthe 1st swing resistance number, the market is in a moderately positive position. The next downside objective isnow at 126.5275. The next area of resistance is around 127.7950 and 128.1475, while 1st support hits today at126.9850 and below there at 126.5275.