The Euro continues to have trouble sustaining a move above the key 1.2500 level, and may be setting upfor another downside leg over the near future. The Euro zone Industrial Production reading may have exceededmarket forecast by a moderate margin, but was offset by a lukewarm German Wholesale Price Index number.The flare-up of Ukraine/Russian tensions is adding another source of headwinds for the Euro, which is unlikely toget many favors from key economic readings from the region later this week. A move to new lows looks to be onthe near-term horizon, and traders should continue to view rallies as an opportunity to get short the Euro.
Technical Outlook: The daily stochastics have crossed over up which is a bullish indication. Rising fromoversold levels, daily momentum studies would support higher prices, especially on a close above resistance. Themarket’s close below the 9-day moving average is an indication the short-term trend remains negative. Theupside closing price reversal on the daily chart is somewhat bullish. Market positioning is positive with the closeover the 1st swing resistance. The next upside objective is 125.7025. The next area of resistance is around125.2950 and 125.7025, while 1st support hits today at 124.2250 and below there at 123.5625.