News that Portugal saw its 1st quarter GDP contract by 0.6% leaves the Euro under a weak bias to startthe new trading week. Apparently US jobs data from last Friday also leaves the Euro under a bit of a downwardbias. Thick resistance is seen today up at 1.3647 and there is a down trend channel resistance line today up at1.3669 and that trend line resistance falls down to 1.3653 on Tuesday. Cushioning the Euro against thedownward tilt on the charts is news of strong German exports for the month of April. The Commitments of TradersFutures and Options report as of June 3rd for Euro showed Non-Commercial traders were net short 32,419contracts, an increase of 14,968 contracts. The Commercial traders were net long 61,857 contracts, an increaseof 18,279 contracts. The Non-reportable traders were net short 29,437 contracts, an increase of 3,310 contracts.Non-Commercial and Non-reportable combined traders held a net short position of 61,856 contracts. Thisrepresents an increase of 18,278 contracts in the net short position held by these traders.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce a move higherif resistance levels are taken out. The intermediate trend has turned down with the cross over back below the 18-day moving average. The market could take on a defensive posture with the daily closing price reversal down.The close over the pivot swing is a somewhat positive setup. The near-term upside target is at 137.0300. Thenext area of resistance is around 136.7300 and 137.0300, while 1st support hits today at 136.1700 and belowthere at 135.9100.