A decline in Euro sentiment to the lowest levels of 2014, renewed Russian incursion reports in the Eastern Ukraine and upbeat UK data would seem to leave the Euro in a vulnerable position from a number offronts. In fact, a rise in German joblessness and flat Italian retail sales would seem to leave the track in the Europointing downward. Furthermore, if any of the early US data points are positive that could quickly usher in a freshnew low for the move in the September Euro. Selling resistance is seen up at 1.3185 which is technically an oldgap area on the charts.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The close below the 9-day moving average is a negative short-term indicatorfor trend. The upside closing price reversal on the daily chart is somewhat bullish. A positive setup occurred withthe close over the 1st swing resistance. The next downside target is 131.2975. With a reading under 30, the 9-dayRSI is approaching oversold levels. The next area of resistance is around 132.2450 and 132.4775, while 1stsupport hits today at 131.6550 and below there at 131.2975.