The September Euro is finding moderate pressure this morning, but is still holding up reasonably well given this week’s decline in global risk appetites. A weaker than expected reading for German consumer sentiment has created few fresh headwinds for the Euro this morning, as recent strength in German economic data has been a key factor with keeping the Euro fairly well supported near these recent highs. As long as EU trouble-spots such as Italy and Greece remain quiet and peripheral EU debt yields remain subdued, the Euro should be able to avoid any sharp downdraft even if there is military action in Syria later this week. The Euro may lose further ground to the Dollar with a positive read on US data later today, but it will stay well clear of yesterday’s spike lows. The September Euro may find support around the 133.46 level later in today’s session, and will likely need to see fresh developments out of EU trouble-spots in order to fall below this recent trading range.
Technical Outlook
EUR (SEP): Daily stochastics have risen into overbought territory which will tend to support reversal action if it occurs. The market’s short-term trend is positive on the close above the 9-day moving average. The upside closing price reversal on the daily chart is somewhat bullish. The market has a slightly positive tilt with the close over the swing pivot. The near-term upside target is at 134.5125. The next area of resistance is around 134.2550 and 134.5125, while 1st support hits today at 133.4850 and below there at 132.9725.