Reports of ongoing fighting in the Ukraine, threats of fresh sanctions against Russia and unimpressiveEuro zone GDP results leave the bear camp in control of the Euro. However, like the Dollar, the Euro is overdonetechnically with this week’s aggressive liquidation wave and seeing an official Ukraine Cease-fire declared mightbe enough to put a key low in the Euro after the influence of the US payroll results have been factored into prices.While there is double bottom support in the Euro at 1.2921 that level might temporarily fail in the wake of 7:30 cstUS data.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The market’s short-term trend is negative as the close remains below the 9-day moving average. The market is in a bearish position with the close below the 2nd swing support number. Thenext downside target is now at 105.90. With a reading under 20, the 9-day RSI indicates the market is extremelyoversold. The next area of resistance is around 108.16 and 109.47, while 1st support hits today at 106.38 andbelow there at 105.90.