News out of Europe today has been decidedly negative putting downward pressure on the Euro. Yesterday’s small rally was on top of three days of upward movement by the Euro. ECB president Draghi speaks today but is expected to reiterate his most recent rhetoric for continued easy monetary conditions and that the ECB will act if necessary. There should be no surprises in his speech that would make the Euro move dramatically. Any potentially large price moves for today would come from the US data.
Technical Outlook
EUR (SEP): The cross over and close above the 40-day moving average is an indication the longerterm trend has turned positive. Stochastics are at mid-range but trending higher, which should reinforce a move higher if resistance levels are taken out. The intermediate trend could be turning up with the close back above the 18-day moving average. The market’s close above the 2nd swing resistance number is a bullish indication. The near-term upside target is at 133.8000. The next area of resistance is around 133.5500 and 133.8000, while 1st support hits today at 132.7500 and below there at 132.2000.