After an attempt to bounce earlier this week the Euro might be technically balanced and capable ofresuming the downward march on the charts. Seeing the Ifo decline to 108.0 from 109.7 leaves the Euro at themercy of fears of even more knock on slowing from Russian sanctions. In the event that the level of sanctionsagainst Russia is raised further that could accelerate the slowing influence on Europe even further. It will be aneat trick for the September Euro to avoid more lower-lows directly ahead. We see ultimate downside targeting of1.33 especially if the situation in the Ukraine sparks major broad based sanctions against Russia.
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 daily closing price reversal up on the daily chart is somewhat positive. The market has a slightly positive tiltwith the close over the swing pivot. The next downside target is 134.1825. With a reading under 30, the 9-day RSIis approaching oversold levels. The next area of resistance is around 134.9150 and 135.1225, while 1st supporthits today at 134.4450 and below there at 134.1825.