The Non-reportable Net Short position in the Euro has hit a new record level at 52,317 contracts, which inturn highlights the bearishness toward the Euro. While there is talk that the Euro zone is poised to seesignificantly large trade surpluses ahead, due to the exchange rate, the implementation of fresh sanctions againstRussia, a looming US Fed meeting and the calls from the OECD for the ECB to provide QE, leaves the Euromired in a downward motion on its charts. In the near term, almost anything positive from the US scheduled reportslate in the coming two days will probably be enough to force the Euro into a new low ground. Initial support and anear term target in the Euro is seen at 1.2907 and then again down at 1.2894. The Commitments of TradersFutures and Options report as of September 9th for Euro showed Non-Commercial traders were net short159,454 contracts, a decrease of 5,729 contracts. The Commercial traders were net long 211,772 contracts, anincrease of 766 contracts. The Non-reportable traders were net short 52,317 contracts, an increase of 6,494contracts. Non-Commercial and Non-reportable combined traders held a net short position of 211,771 contracts.This represents an increase of 765 contracts in the net short position held by these traders.
Technical Outlook: Rising from oversold levels, daily momentum studies would support higher prices,especially on a close above resistance. The market’s short-term trend is negative as the close remains below the9-day moving average. With the close higher than the pivot swing number, the market is in a slightly bullishposture. The near-term upside objective is at 130.1575. The market is approaching oversold levels on an RSIreading under 30. The next area of resistance is around 129.8050 and 130.1575, while 1st support hits today at129.0950 and below there at 128.7375.