It is difficult to argue against more downside action in the Euro but the close proximity to even numbersupport of 1.35 might cushion the currency against a downside extension today. Unfortunately for the bull camp,Euro zone economic sentiment looks to end the week on a bearish track, especially with the ECB earlier thisweek attempting to talk down the Euro and the Euro generally respecting a pattern of lower highs this week.Remain negative toward the September Euro as long as it remains below 1.3543.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. Themarket’s close below the 9-day moving average is an indication the short-term trend remains negative. Themarket’s close below the pivot swing number is a mildly negative setup. The next downside target is now at135.0550. The next area of resistance is around 135.3999 and 135.5350, while 1st support hits today at 135.1600and below there at 135.0550.