The Euro is finding definitive near-term support around the 1.3428 area, but is clearly having troubles haking off the prospects of fresh sanctions against Russia as well as the likelihood of easier ECB policy. Whilean in-line set of German Import Prices helped the Euro avoid further chart damage this morning, the marketneeds to see clear-cut positive results from upcoming inflation and sentiment numbers to have any chance ofsustaining upside momentum. With a lack of progress in the Ukraine shadowing the market, the Euro’s best hopefor a near-term bounce may come from post-FOMC disappointment. However, any sharp move back toward the1.3516 area would present a selling opportunity.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. A negative signal for trend short-term was given on a close under the 9-barmoving average. It is a slightly negative indicator that the close was under the swing pivot. The next downsideobjective is 134.1900. The 9-day RSI under 30 indicates the market is approaching oversold levels. The next areaof resistance is around 134.4600 and 134.5500, while 1st support hits today at 134.2800 and below there at134.1900.