The charts in the Euro look bearish and this week’s economic news fails to alter the downward motion inthe Euro currency. Slack German PPI results and the call for German tax cuts would seem to send a messagethat even more stimulus must be undertaken in order to bring the Euro zone to sustained self-propagating growth.In a minimally supportive development, the Euro saw Greek unemployment decline but the trade just doesn’t lookto be in a position to embrace improvements from less important economic regions of the Euro zone. Tradersshould be sellers of modest recovery rallies in the Euro looking for even more new lows ahead.
Technical Outlook: The market was pushed to a new contract low. A bullish signal was given with anupside crossover of the daily stochastics. Daily stochastics are showing positive momentum from oversold levels,which should reinforce a move higher if near term resistance is taken out. The close below the 9-day movingaverage is a negative short-term indicator for trend. The daily closing price reversal up is a positive indicator thatcould support higher prices. The close over the pivot swing is a somewhat positive setup. The next upside targetis 130.0300. The next area of resistance is around 129.7500 and 130.0300, while 1st support hits today at128.8100 and below there at 128.1500.