The hits keep on in the headlines for the Euro as much weaker than expected German Industrial data overnight has rekindled slowing concerns and would seem to signal even more declines in the Euro ahead. Infact, the German data fell to the lowest levels in over 5 years and that clearly rekindles fears of a return torecession. With the slack data, the news of an Ebola infection outside of West Africa and the failed ECB stimulusattempt last week, it is only a matter of time before the Euro falls to lower lows. In fact, until economists noteimproved export potential because of the low exchange rate, the Euro probably has more downside work ahead.Initial support is seen at 1.2578 and then not until the 1.2514 level.
Technical Outlook: The crossover up in the daily stochastics is a bullish signal. Daily momentum studiesare on the rise from low levels and should accelerate a move higher on a push through the 1st swing resistance.The market’s close below the 9-day moving average is an indication the short-term trend remains negative. Themarket setup is supportive for early gains with the close over the 1st swing resistance. The next upside target is127.9900. The next area of resistance is around 127.4800 and 127.9900, while 1st support hits today at 125.8000and below there at 124.6300.