EUR Mid-day Analysis

As in the Dollar, the Euro was short term technically overdone and in need of some technical corrective action. Slack German economic data overnight, the threat of further sanctions against Russia, threats of sanctionsfrom Russian against the EU and the prospect of a cross border incursion over the weekend should keep theEuro off balance and unable to make significant upside ground. In fact, traders should see this morning’s actionas chance to sell the Euro at higher levels for an eventual continuation of the downward trend.

Technical Outlook: The stochastics indicators are rising from oversold levels, which is bullish and shouldsupport higher prices. A negative signal for trend short-term was given on a close under the 9-bar movingaverage. The daily closing price reversal down puts the market on the defensive. The market’s close below thepivot swing number is a mildly negative setup. The near-term upside objective is at 134.2275. The market isapproaching oversold levels on an RSI reading under 30. The next area of resistance is around 133.9250 and134.2275, while 1st support hits today at 133.3550 and below there at 133.0875.