The Euro is under the influence of a bearish chart breakdown and it also appears as if better thanexpected Euro zone and German Service sector readings have failed to provide support to the currency. In short,the Euro is out of favor and the path of least resistance is pointing downward. It is possible that the primarysource of the slide in the Euro this morning is an expectation for something favorable from the US jobs sector.Apparently the trade hasn’t been able to put softer than expected Euro zone inflation readings in the rearviewmirror, even in the face of positive data. Near term downside targeting is seen in the Euro down at 1.3694 andperhaps not until up trend channel support is retested at 1.3634.
Technical Outlook: Momentum studies are trending lower from high levels which should accelerate amove lower on a break below the 1st swing support. The market’s short-term trend is positive on the close abovethe 9-day moving average. It is a slightly negative indicator that the close was under the swing pivot. The nextdownside target is now at 136.8150. The next area of resistance is around 137.6600 and 138.0550, while 1stsupport hits today at 137.0400 and below there at 136.8150.