The path of least resistance is down in the Euro for a number of reasons. First of all, hints of furthersoftening in the German economy, in the second half from German officials over the weekend has weighed on theEuro to start but the Euro is also under pressure from news of persistently soft Euro zone inflation results. It isalso possible that ongoing strength in oil prices is set to restrain Euro zone activity and that in turn probably keepsthe trade in a position to anticipate further easing assistance from the ECB ahead. Downtrend channel resistancein the June Euro is seen today at 1.3571 and that resistance line alls down to 1.3564 on Tuesday. TheCommitments of Traders Futures and Options report as of June 10th for Euro showed Non-Commercial traderswere net short 56,400 contracts, an increase of 23,981 contracts. The Commercial traders were net long 88,665contracts, an increase of 26,808 contracts. The Non-reportable traders were net short 32,265 contracts, anincrease of 2,828 contracts. Non-Commercial and Non-reportable combined traders held a net short position of88,665 contracts. This represents an increase of 26,809 contracts in the net short position held by these traders.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may be drying upsoon. The market’s close below the 9-day moving average is an indication the short-term trend remains negative.The downside closing price reversal on the daily chart is somewhat negative. The market tilt is slightly negativewith the close under the pivot. The next downside objective is 134.8650. The next area of resistance is around135.6799 and 136.0250, while 1st support hits today at 135.1000 and below there at 134.8650.