We think the Euro has already factored a portion of today’s “potentially” dovish ECB talk at the Jackson Hole meeting. Historically the ECB has rarely acted as quickly as the market had hoped it would and while theEuro head will probably hint at fresh support for the Euro zone economy, it could take decisive timing hints fromhim to press the Euro into fresh new lows for the move. In fact, the Euro could derive a measure of buyinginterest, in the event that Yellen presents a case to raise inflation levels that could be used to kick rate hike actioninto motion. The trend is down in the Euro, but two sided volatility could be seen around central banker dialoguetoday.
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. The daily closing price reversal up on the daily chart is somewhat positive. With the close higherthan the pivot swing number, the market is in a slightly bullish posture. The next downside target is 132.2825. Thenext area of resistance is around 133.0750 and 133.2225, while 1st support hits today at 132.6050 and belowthere at 132.2825.