After a two day rally the Euro is slightly lower as French Industrial Production came in negative for the third month in a row. Italian GDP also came in negative and lower than expected further pressuring the Euro. The lack of positive news combined with a 200 point upward correction over two days is once again starting to turn sentiment negative. The rest of today’s trading should carry that negative tone as there is no real news scheduled to change traders’ minds.
Technical Outlook
EUR (SEP): The cross over and close above the 60-day moving average indicates the longer-term trend has turned up. The daily stochastics gave a bullish indicator with a crossover up. Daily momentum studies are on the rise from low levels and should accelerate a move higher on a push through the 1st swing resistance. A positive signal for trend short-term was given on a close over the 9-bar moving average. There could be more upside follow through since the market closed above the 2nd swing resistance. The near-term upside objective is at 133.5475. The next area of resistance is around 133.1350 and 133.5475, while 1st support hits today at 131.9850 and below there at 131.2475.