The September Euro found moderate pressure this morning, but bounced back from early losses and remains fairly well supported near the upper portion of the recent trading range. There has been noted improvement with economic data from throughout the region, although there is still a sizable gap between German performance and the rest of the EU. Peripheral EU risk concerns remain “on holiday”, which has been a major factor with the Euro holding its ground near the recent highs. There is still some reluctance to make any decisive move beyond the 133.00 level early this week, which may hint at some vulnerability towards a swift pullback if and when the next EU risk event flares up. The September Euro should find decent support around the 132.68 area during today’s trading, and will remain in close proximity to the recent highs just as long as the market’s focus remains on other regions of the globe.
Technical Outlook
EUR (SEP): Momentum studies are trending higher but have entered overbought levels. A positive signal for trend short-term was given on a close over the 9-bar moving average. The gap lower price action on the day session chart is a bearish indicator for trend. The upside closing price reversal on the daily chart is somewhat bullish. The close over the pivot swing is a somewhat positive setup.