While the June Euro has managed to respect the 1.3586 level 4 times on the charts in the last 5 sessions,the real test of the Euro looms on Thursday in the face of an ECB rate decision. Surprisingly the Euro wasn’tundermined this morning by inflation readings that came in slightly below expectations, perhaps because the Eurozone April jobless rate improved slightly. In fact, with Euro zone jobless readings falling down to the lowest levelsince October of 2012, that in turn could toss some cold water on the prospects of an ECB easing this Thursday.Given Euro employment data overnight it could take much stronger than expected US data to halt a slight bouncein the June Euro up to 1.3626.
Technical Outlook: Daily momentum studies are on the rise from low levels and should accelerate a movehigher on a push through the 1st swing resistance. The market’s close below the 9-day moving average is anindication the short-term trend remains negative. The swing indicator gave a moderately negative reading with theclose below the 1st support number. The near-term upside target is at 136.5350. The next area of resistance isaround 136.2099 and 136.5350, while 1st support hits today at 135.7100 and below there at 135.5350.