While the Euro has managed a slight rebound overnight, talk that the ECB might be investigating the needfor additional stimulus probably serves to keep a thick layer of resistance hanging above the Euro. In fact, with theBOE tossing around hints of rising rates, that should leave the Euro mired in the May and June down trendpattern. Down trend channel resistance is seen up at 1.3609 and that might be a place to initiate fresh short sideplays in the September Euro.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. The close belowthe 9-day moving average is a negative short-term indicator for trend. The daily closing price reversal up on thedaily chart is somewhat positive. With the close over the 1st swing resistance number, the market is in amoderately positive position. The next downside objective is now at 134.8850. The next area of resistance isaround 135.8500 and 136.0850, while 1st support hits today at 135.2500 and below there at 134.8850.