The Euro has managed to find its footing and avoid further chart damage, but it is showing little inclinationfor regaining any large portion of recent losses this morning. The prospect of additional sanctions against Russiacontinues to shadow the Euro, which is having to overcome the likelihood of easier ECB policy on the market’shorizon. Italian Business Confidence was lukewarm at best but may have been taken in stride given thateconomy’s sluggish performance as of late. Unless there is a substantial de-escalation of tensions from theUkraine/Russia situation, the September Euro looks to be heading towards the 1.3318 level over the near future.The Commitments of Traders Futures and Options report as of July 22nd for Euro showed Non-Commercialtraders were net short 90,304 contracts, an increase of 25,963 contracts. The Commercial traders were net long132,099 contracts, an increase of 25,899 contracts. The Nonreportable traders were net short 41,795 contracts, adecrease of 65 contracts. Non-Commercial and Nonreportable combined traders held a net short position of132,099 contracts. This represents an increase of 25,898 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 short-term trend is negative as the close remains below the 9-day moving average. Themarket setup is somewhat negative with the close under the 1st swing support. The next downside objective isnow at 133.8525. With a reading under 20, the 9-day RSI indicates the market is extremely oversold. The nextarea of resistance is around 134.5850 and 134.9525, while 1st support hits today at 134.0350 and below there at133.8525.