The Euro is doing comparatively well given this morning’s lukewarm Euro zone data, and may already befocusing on events across the Atlantic for direction. Of this morning’s PMI readings, only France showed an uptickbut with a 47.8 reading from that nation, that has produced little in the way of lasting support. Sluggish inflationlevels are going to be difficult to overcome over the near-term as the ECB has been given more incentive to crankup fresh easing measures by the end of this year. However, it would not take much in the way of marketdisappointment with this morning’s Non-Farm Payroll number to see a sizable short-covering bounce. The Eurocould easily rise back towards resistance at 1.3442, but any further gains should be viewed as a sellingopportunity as this downtrend looks to have much further left to go before finding a floor.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The market’s close below the 9-day moving average is an indication the shorttermtrend remains negative. The market’s close below the pivot swing number is a mildly negative setup. Thenext downside objective is now at 133.5850. The 9-day RSI under 20 suggests the market is extremely oversold.The next area of resistance is around 134.0399 and 134.1849, while 1st support hits today at 133.7400 and belowthere at 133.5850.