The Euro continues to be undermined by slack Euro zone economic readings, doubt on the leadership ofDraghi and also because of the short term carry over influences of the US elections. We would ordinarily thinkthat the recent consolidation low support of 1.2489 on the monthly charts will hold, but with significantly importantUS payroll results due out later this week, we have to leave the path of least resistance in the Euro pointingdownward. Some might even suggest that the Euro is destined to ultimately retest the 1.20 level on the monthlycharts as the US recovers and the Euro zone stagnates.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The market’s short-term trend is negative as the close remains below the 9-day moving average. With the close over the 1st swing resistance number, the market is in a moderately positiveposition. The next downside target is 124.5150. The next area of resistance is around 125.9200 and 126.3150,while 1st support hits today at 125.0200 and below there at 124.5150.