While the Euro could have come under pressure because of a contraction in Euro zone March PPIresults, the Euro has generally remained within striking distance of its recent highs. Seeing the Euro remain nearits recent consolidation highs in the wake of signs of growth in the US is telling, as the trade continues to hold avery high bar for US growth and it is also forgiving of slack data from the Euro zone. In fact, one might suggestthat the Euro has continued to discount the prospect of serious drag on its economy from the implementation ofRussian sanctions and it also has discounted the prospect of a serious backlash from Russia in the event thatmore sanctions are applied. The Commitments of Traders Futures and Options report as of April 29th for Euroshowed Non-Commercial traders were net long 25,262 contracts, a decrease of 519 contracts. The Commercialtraders were net short 2,175 contracts, a decrease of 1,656 contracts. The Non-reportable traders were net short23,087 contracts, an increase of 1,136 contracts. Non-Commercial and Non-reportable combined traders held anet long position of 2,175 contracts. This represents a decrease of 1,655 contracts in the net long position held bythese traders. Support in the Euro moves up to 1.3862 and resistance isn’t seen until 1.3915.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend to support reversalaction if it occurs. The close above the 9-day moving average is a positive short-term indicator for trend. It is aslightly negative indicator that the close was under the swing pivot. The next upside objective is 139.3075. Thenext area of resistance is around 139.0650 and 139.3075, while 1st support hits today at 138.3150 and belowthere at 137.8075.