The September Euro remains fairly well supported this morning, in spite of some sluggish risk appetites throughout global markets, and looks to be heading for a retest of the early August highs just above the 134.00 level. Today’s strength has come in spite of a weaker than expected reading for German PPI earlier this morning, as lukewarm inflation levels will likely be a secondary factor to the improvement seen with growth and sentiment throughout the region. As long as peripheral EU problems remain on the backburner, and with “flash” PMI numbers holding out the promise of continued growth, the Euro looks to have some further near-term upside left to go before this rally runs out of stream. The September Euro may extend today’s up move towards the 134.16 level later during today’s session, but will need to see a positive reception for the “flash PMI” data later this week in order to sustain this current strength and make a large-scale extension to this current uptrend.
Technical Outlook
EUR (SEP): The daily stochastics have crossed over up which is a bullish indication. Stochastics are at mid-range but trending higher, which should reinforce a move higher if resistance levels are taken out. The market’s short-term trend is positive on the close above the 9-day moving average. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The next upside objective is 134.0300. The next area of resistance is around 133.6900 and 134.0300, while 1st support hits today at 133.0900 and below there at 132.8300.