The Euro is showing renewed weakness and the prospect of a lower low are high as the trade is doubtful of a Euro plan to spread the risk of QE risk onto those areas requiring more assistance and for many that will probably delay or moderate the amount of stimulus brought to the market. In short, the path of least resistance in the Euro is down and new lows for the move are the order of the day.
Technical Outlook: The daily stochastics have crossed over down which is a bearish indication. Declining momentum studies in the neutral zone will tend to reinforce lower price action. A negative signal for trend shortterm was given on a close under the 9-bar moving average. The market’s close below the pivot swing number is a mildly negative setup. The next downside target is now at 122.1925. The next area of resistance is around 123.3750 and 123.9325, while 1st support hits today at 122.5050 and below there at 122.1925.