With the exception of a few PMI numbers this week the Euro is suffering from a lack of fresh economic data. Coming into the week with a decidedly negative tone coupled with the lack of data, the Euro is languishing in its own negative momentum. Unless there is one or more US economic reports today that are extremely negative, the question will be will the Euro find any reason to rally. Many market players may hold off on any fresh action until tomorrow’s US employment data as a cautionary approach to an already oversold situation is likely in the Euro.
Technical Outlook
EUR (SEP): The market now above the 60-day moving average suggests the longer-term trend has turned up. Daily stochastics declining into oversold territory suggest the selling may be drying up soon. The close below the 9-day moving average is a negative short-term indicator for trend. A positive setup occurred with the close over the 1st swing resistance. The next downside target is 131.3750. The next area of resistance is around 132.4199 and 132.6149, while 1st support hits today at 131.8000 and below there at 131.3750.