The Bundesbank has revised its Euro zone growth forecast lower and the drag from Russian sanctions lives on. While traders and economists outside of the Euro zone expect to see talk of additional easing from theECB later this week, history suggests the ECB always waits to act well beyond the timing of calls from themarketplace. With Bund rates falling daily, the Dollar poised to breakout up and US data potentially “goodenough” to win a weak contest, the path of least resistance in the September Euro is down and we doubt thatconsolidation low support at 1.3335 will hold up the Euro this week!
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher price action.The market’s close below the 9-day moving average is an indication the short-term trend remains negative. Theswing indicator gave a moderately negative reading with the close below the 1st support number. The next upsideobjective is 134.1600. The next area of resistance is around 133.8600 and 134.1600, while 1st support hits todayat 133.4000 and below there at 133.2400.