Euro zone inflation readings were as expected and for some that might have been positive enough tosupport the Euro, as the Euro this morning remains within close striking distance of the early June highs.However, German retail sales for May were a touch less than expectations but the market has managed to shakeoff that negative influence. Up-trend channel support in the September Euro is seen at 1.3594 and that supportlevel rises to 1.3602 on Tuesday. There might be little in the way of resistance seen until the 1.3670 level. TheCommitments of Traders Futures and Options report as of June 24th for Euro showed Non-Commercial traderswere net short 58,619 contracts, a decrease of 2,642 contracts. The Commercial traders were net long 94,826contracts, an increase of 1,416 contracts. The Non-reportable traders were net short 36,208 contracts, anincrease of 4,059 contracts. Non-Commercial and Non-reportable combined traders held a net short position of94,827 contracts. This represents an increase of 1,417 contracts in the net short position held by these traders.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory, so somecaution is warranted. A positive signal for trend short-term was given on a close over the 9-bar moving average.The market setup is supportive for early gains with the close over the 1st swing resistance. The next upside targetis 136.8425. The next area of resistance is around 136.7350 and 136.8425, while 1st support hits today at136.3250 and below there at 136.0225.