The Euro sits just barely above its recent new low for the move and the outlook for today would seem to lay the foundation for a sharp range down extension. While the Russian currency has managed a bounce many think that is the result of the Russian government forcing Russian companies to repatriate currency to support the currency and government. With an ex-Russian official warning of a full-fledged Russian crisis is ahead, the Euro and the Euro zone economy are expected to suffer collateral damage ahead.
Technical Outlook: The market was pushed to a new contract low. Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. The market’s short-term trend is negative as the close remains below the 9-day moving average. The market’s close below the pivot swing number is a mildly negative setup. The next downside objective is now at 121.8925. The next area of resistance is around 122.6250 and 122.9925, while 1st support hits today at 122.0750 and below there at 121.8925.