As suggested already German PPI data probably provided some early selling in the Euro and with theflow of German price data digested, it is clear that the Euro might remain pinned to its recent lows. However, it isalso clear that the Dollar is struggling to attract buying interest and therefore the Euro isn’t expected to comeunder noted pressure. A pivot point is seen in the June Euro today at 1.3684 and we have to generally favor thebear tilt, even as we expect trading ranges to be extremely narrow in the wake of a nearly empty US scheduledreport slate.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The close below the 9-day moving average is a negative short-term indicatorfor trend. The close over the pivot swing is a somewhat positive setup. The next downside target is now at136.7050. The next area of resistance is around 137.2700 and 137.5050, while 1st support hits today at 136.8700and below there at 136.7050.