The Euro only saw modest support from a slightly better than expected Retail sales result for October. Clearly the currency markets are already looking ahead to the Thursday ECB meeting where it is largely expected the central bank will offer additional stimulus measures. Euro bulls have to hope that US numbers falter a little and a speech from the US President later this morning is perceived as anti-business/anti-growth. In the end, fresh recession predictions for the Euro zone in the wake of PMI data leaves the trend in the Euro pointing downward, even if the Euro shows some modest corrective action off some of the US data points later this morning.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a move lower if support levels are taken out. The close below the 9-day moving average is a negative short-term indicator for trend. The close below the 1st swing support could weigh on the market. The next downside objective is now at 123.0500. The next area of resistance is around 124.3200 and 125.0500, while 1st support hits today at 123.3200 and below there at 123.0500.