As usual the ECB has indicated they will “wait” for recent stimulus to “sink in” and that means the Eurozone economy is set to languish and almost anything positive from the US economic report slate will probablyrekindle pressure on the Euro. In a typical mirroring of history, the only way we see the Euro shaking off itsdowntrend and bouncing, would be to see the US economic pace falter. In other words just to temper thedownward motion in the Euro ahead, probably requires a noted degradation of the US economy. On the otherhand, if the US stumbles, that in turn probably means the Euro zone will have to recover without tailwinds fromthe US.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. The market’s closebelow the 9-day moving average is an indication the short-term trend remains negative. The close below the 1stswing support could weigh on the market. The next downside objective is 123.9025. The next area of resistanceis around 125.4250 and 126.1225, while 1st support hits today at 124.3150 and below there at 123.9025.