The Euro has forged some fresh damage on the charts overnight and those declines seem to be partly because of knowledge of fresh QE but also because of renewed fear that 11 banks in the Euro zone might failstress tests. However, sentiment in the Euro zone has improved somewhat and the talk of a return to recessionhas moderated somewhat in the face of the sharp slide in oil prices. We see little in the way of support in theDecember Euro until the consolidation lows down at 1.2611. About the only partially supportive angle for the Eurotoday is the fact that US scheduled data later this morning doesn’t look to provide fodder for the Dollar bulls.
Technical Outlook: Momentum studies are trending higher from mid-range, which should support a movehigher if resistance levels are penetrated. The market’s close below the 9-day moving average is an indication theshort-term trend remains negative. The outside day down is somewhat negative. The market’s close below the 1stswing support number suggests a moderately negative setup for today. The next upside objective is 128.7875.The next area of resistance is around 127.8550 and 128.7875, while 1st support hits today at 126.5850 and belowthere at 126.2475.