While the Euro has managed a bounce off its most recent spike low, the currency is fighting an uphill battle because of another dose of economic disappointment from a German Consumer confidence reading. WithEU officials earlier this week suggesting they have yet to see noted benefits of favorable exchange rates in theirexport business that would seem to leave the trend in the Euro and other Non-Dollar currencies pointing down.Down trend channel resistance is seen up at 1.2844 today but that trend line falls to 1.2823 on Monday.
Technical Outlook: The market made a new contract low on the break. Momentum studies are declining, but have fallen to oversold levels. The market’s close below the 9-day moving average is an indication the short term trend remains negative. It is a slightly negative indicator that the close was lower than the pivot swingnumber. The next downside objective is 126.6175. Some caution in pressing the downside is warranted with theRSI under 30. The next area of resistance is around 127.9450 and 128.3575, while 1st support hits today at127.0750 and below there at 126.6175.