The Euro remains out of favor even though the US Fed tried to maintain the expectation of low ratesremaining in place for the near future. In fact, the Euro was also unable to garner support from news that the MayEuro zone trade surplus rose and that suggests the trade remains more up-beat toward the US and UK, than itdoes toward the core of the Euro zone. Therefore we can’t rule out at least a return to the June consolidation lowsdown at 1.3516 over the coming trading sessions.
Technical Outlook: The close below the 40-day moving average is an indication the longer-term trend hasturned down. Momentum studies are still bearish but are now at oversold levels and will tend to support reversalaction if it occurs. The market’s close below the 9-day moving average is an indication the short-term trendremains negative. The market is in a bearish position with the close below the 2nd swing support number. Thenext downside objective is now at 135.1775. The next area of resistance is around 136.0549 and 136.5174, while1st support hits today at 135.3850 and below there at 135.1775.