The Euro, also in a tight range through the early morning hours on Wednesday, is very oversold as the last five sessions have seen a decline of over 200 points. The couple of European Services PMI’s out this morning have erred on the positive side, but failed to provide enough good news to move the multi-country currency. Attention will now focus on the US Trade numbers and Beige Book due out later in the day.
Technical Outlook
EUR (SEP): The major trend has turned down with the cross over back below the 60-day moving average. Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. The market’s short-term trend is negative as the close remains below the 9-day moving average. The market’s close below the 1st swing support number suggests a moderately negative setup for today. The next downside target is 131.1100. The next area of resistance is around 132.0400 and 132.3100, while 1st support hits today at 131.4400 and below there at 131.1100.