The December Euro has put together a reversal from a weekly low this morning, and is starting to make some headway with recovering from its post-FOMC pullback. Today’s increase in German Consumer Sentiment has helped the Euro regain upside momentum, although it may be difficult to fully overcome a growing riskaversion theme throughout global markets due to US budget acrimony. While recent comments by ECB President Draghi still cast a long shadow over the market, the Euro should be able to hold its ground within this recent consolidation price zone just as long as EU trouble spots can stay out of market news headlines. The December Euro should find support around the 134.84 level later this morning, but should stay well clear of the recent lows if “risk off” attitudes do not gain further momentum during today’s trading.
Technical Outlook
EUR (DEC): Daily stochastics have risen into overbought territory which will tend to support reversal action if it occurs. The market’s short-term trend is positive on the close above the 9-day moving average. It is a slightly negative indicator that the close was lower than the pivot swing number. The near-term upside objective is at 135.4025. The next area of resistance is around 135.0350 and 135.4025, while 1st support hits today at 134.4850 and below there at 134.3025.