The Euro is entrenching in a downward motion on its charts and the flow of European scheduled data solidifies the bearish environment. When one adds in the prospect of even more sanctions against Russia in theevent Russian troops cross the Ukrainian border again, the bear camp has a very strong case. In fact, we suspectthat the ECB is extremely happy with the action in their currency over the last two months as that in turn couldbegin to help their export prospects. If the stalwart of the European economy is Germany and German factoryorders were very weak in June, there might be a case for the Euro to fall to 1.32 in the weeks ahead. Sell theSeptember Euro on 20-30 point short covering bounces.
Technical Outlook: Daily momentum studies are on the rise from low levels and should accelerate a movehigher on a push through the 1st swing resistance. The close below the 9-day moving average is a negativeshort-term indicator for trend. The market is in a bearish position with the close below the 2nd swing supportnumber. The near-term upside target is at 134.5275. The market is approaching oversold levels on an RSIreading under 30. The next area of resistance is around 134.1150 and 134.5275, while 1st support hits today at133.4450 and below there at 133.1875.