The Euro was done few favors with this morning’s German economic data, as a lackluster IndustrialProduction reading muted any support from a decent set of Trade Balance data. Even so, the Euro was able tohold above Thursday’s spike low, indicating that US jobs data will have the final say on whether prices will sink tonew lows to finish out this week. Longer-term prospects for the Euro are not too bright in the wake of the ECB’spost-meeting comments, but there is still considerable room for an end-of-week short-covering rebound with anydisappointment from today’s US jobs data. However, a move back above the key 1.2500 level may be seen bymany traders as an opportunity to approach the short side of the market.
Technical Outlook: The market broke to a new contract low. Daily stochastics are trending lower but havedeclined into oversold territory. A negative signal for trend short-term was given on a close under the 9-barmoving average. There could be some early pressure today given the market’s negative setup with the closebelow the 2nd swing support. The next downside target is 122.5575. The market is approaching oversold levelson an RSI reading under 30. The next area of resistance is around 124.5749 and 125.7775, while 1st support hitstoday at 122.9650 and below there at 122.5575.