The September Euro has found heavy pressure this morning and has made a fairly strong move below the 133.00 level for the first time since mid-August. While not enough to create an uptick in the Unemployment rate, a surprising increase in German Jobless numbers has clearly rattled Euro zone sentiment as comparative strength from that nation’s economy has helped to overcome lukewarm to sluggish conditions from the peripheral EU. While Italian political tensions may be easing this morning, they are far from being completely resolved and along with a potential third Greek bailout are weighing on the Euro early in today’s trading. A rebound in global risk appetites may not be enough for the Euro to recover from today’s downdraft, as it is likely to face additional pressure if today’s US economic numbers show positive results. The September Euro may find decent support around the 132.34 level during today’s trading, and will likely need to find positive news from the EU in order to put the brakes on this current sell off.
Technical Outlook
EUR (SEP): A bearish signal was triggered on a crossover down in the daily stochastics. Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. The market’s short-term trend is negative as the close remains below the 9-day moving average. The close below the 1st swing support could weigh on the market. The next downside target is now at 132.5175. The next area of resistance is around 133.8950 and 134.4175, while 1st support hits today at 132.9450 and below there at 132.5175.