Strong positive trading for three days in the Euro is giving way to fairly sloppy trading session today. Economic news for the day is sparse with the only report of meaning being the French Current Account which came in much lower than expectations. The Euro sold off on the news and then recovered. Because of the lack of news the Euro will trade off of technical factors which could keep today’s trading quiet with a slight upward bias. Tomorrow’s scheduled news of Industrial Production and inflation numbers for several European nations along with all of Europe could be more of a market mover than usual as there is really little else for traders to grasp onto for guidance. Look for the rest of today to be directionless unless there is an unexpected news item.
Technical Outlook
EUR (SEP): Positive momentum studies in the neutral zone will tend to reinforce higher price action. The market’s short-term trend is positive on the close above the 9-day moving average. It is a mildly bullish indicator that the market closed over the pivot swing number. The near-term upside target is at 133.0775. The next area of resistance is around 132.9150 and 133.0775, while 1st support hits today at 132.4450 and below there at 132.1375.