The EUR/USD is selling off slightly Tuesday as the consolidation continues. The currency pair is bouncing off our 1st tier uptrend line while sitting comfortably above our downtrend line, showing investors are holding onto the uptrend as U. S. equities make excellent strides fundamentally.

The EUR/USD is experiencing weakness after a much weaker than expected Current Account, confirming the trend in yesterday's Trade Balance.

The EU is importing far more than exporting, resulting in a larger supply of Euros. On a positive note, all of the manufacturing and services PMIs came in slightly better than expectations, giving investors hope the economic slowdown is leveling off.

Despite the improvement of data, the numbers are still discouraging since they reflect an environment of deep contraction. Regardless, the stability is comforting and investors will hope to see improvements across the board upon their next release.

If the EU economy can manage to stabilize along with the U. S., the EUR/USD should experience considerable strength trend-wise since the ECB's benchmark rate sits at a relatively comfortably level compared to that of the U. S.

Additionally, the EU has not relied upon quantitative easing as America, Japan, and Britain have, giving the Euro a leg up in multiple areas.

Fundamentally, we maintain our supports of 1.3554, 1.3494, 1.3427, and 1.3371. To the topside, we hold our resistances of 1.3624, 1.3688, 1.3724, 1.3800, and 1.3848.

The 1.35 area becomes a psychological cushion with 1.40 serving as a highly psychological barrier. The EUR/USD is currently exchanging at 1.3552.

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