Scheduled data flow from the Euro zone sets the Euro into a downward tilt on the charts early today, withthe prospect of a geopolitical battle in Washington over immigration providing some minor cushion to the Eurocurrency. With ECB officials still talking up the prospect of additional easing and slack Chinese data overnightdampening global economic hopes, the path of least resistance in the Euro is expected to remain down. In fact,seeing positive US claims data early today could justify a slide in the Euro down to the next critical support levelon the charts of 1.2501.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce a move higherif resistance levels are taken out. The market’s short-term trend is positive on the close above the 9-day movingaverage. The close over the pivot swing is a somewhat positive setup. The near-term upside target is at126.4775. The next area of resistance is around 125.9950 and 126.4775, while 1st support hits today at 125.0850and below there at 124.6575.