Widespread fears of slowing grip the marketplace and that leaves the bias pointing downward in the Euro. With calls for extra stimulus from the EU circulating overnight, the edge should remain with the bear camp in theEuro. The best chance for the Euro to bottom and make the early October low a significant low would be seen ifand when the US Fed becomes definitively dovish and in a sense rides to the rescue. In fact, Blackrock thismorning suspects that the US Fed will step forward and temper global slowing fears soon. Therefore we suggestthat shorts in the Euro look to bank profits on a return to 1.26 and consider the purchase of a March Euro 1.29 callfor 114 for a position play. News reports this morning suggest that the Euro zone has already seen an $80 billionstimulus from lower oil prices!
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher priceaction. The market back below the 18-day moving average suggests the intermediate-term trend could be turningdown. The close below the 1st swing support could weigh on the market. The next upside target is 127.9175. Thenext area of resistance is around 127.2050 and 127.9175, while 1st support hits today at 126.1150 and belowthere at 125.7375.