A big range up attempt in the Euro overnight was clearly rejected by yet another sweep of patently discouraging data points. With German economic expectations figures fostering talk of contractionary status in theEuro zone’s largest economy and Eurozone August Industrial output declining by 1.8% a return back to levelsbelow 1.26 would appear to be in the cards. Initial support is seen down at 1.2611 and it could take a rally backabove 1.2755 to effectively alter a patently bearish bias toward the Euro.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce a move higherif resistance levels are taken out. The cross over and close above the 18-day moving average indicates theintermediate-term trend has turned up. A positive setup occurred with the close over the 1st swing resistance. Thenear-term upside objective is at 127.9675. The next area of resistance is around 127.7150 and 127.9675, while1st support hits today at 126.7650 and below there at 126.0675.