While the Euro is starting off slightly under pressure today one might have expected the currency to be hammered in the wake of the easing/stimulus promises from the ECB overnight. Down-trend channel resistance is seen at 1.2548 and that resistance line falls down to 1.2537 in the next trading session. While we think some of the pressure might be set to abate on the Euro (because the Dollar is showing a lack of follow through) the Euro technically and fundamentally remains in a downtrend pattern. Therefore the Euro has to prove it has thrown off
the bear mantle with a close back above 1.26 and or the ability to hold above 1.24 for an extended period of time.
Technical Outlook: A positive indicator was given with the upside crossover of the 9 and 18 bar moving average. The crossover up in the daily stochastics is a bullish signal. Momentum studies are trending higher from mid-range, which should support a move higher if resistance levels are penetrated. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. It is a mildly bullish indicator that the market closed over the pivot swing number. The next upside objective is 125.4650. The next area of resistance is around 125.1800 and 125.4650, while 1st support hits today at 124.3200 and below there at 123.7450.