The Euro ranged downward to start the last trading session of the week. The bull camp in the Euro has tobe rocked back on their heels in the wake of a fleeting rally off the latest stimulus efforts from the ECB. While theEuro zone actually showed PMI readings that depict positive growth, weakness in new orders and evidence ofsignificant price reductions in Europe leaves fear of slowing and deflation alive in the Euro zone. Unfortunately forthe bull camp in the Euro, the market faces a US non-farm payroll report that looks to be given the benefit of thedoubt. In other words, almost anything at expectations and almost any upward revision in the past month’s figureprobably gives rise to a fresh downside breakout in the Euro to the lowest levels since August of 2012.
Technical Outlook: The stochastics indicators are rising from oversold levels, which is bullish and shouldsupport higher prices. A negative signal for trend short-term was given on a close under the 9-bar movingaverage. The market setup is supportive for early gains with the close over the 1st swing resistance. The neartermupside objective is at 127.5225. Some caution in pressing the downside is warranted with the RSI under 30.The next area of resistance is around 127.1450 and 127.5225, while 1st support hits today at 126.2950 and belowthere at 125.8225.