The Euro has carved out a series of higher lows over the last couple sessions and we also suspect that the Euro is benefiting from the Russian Dollar dumping overnight. It is also possible that the Euro is seeing some might lift from the quasi-risk-on vibe in global equities. However, we would suggest that the bounce in the Euro is simply a chance to sell the Euro at a higher level, as the fear of more Russian trouble ahead should leave the Euro in its well-defined down trend pattern.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. The close over the pivot swing is a somewhat positive setup. The next downside target is now at 121.4975. The next area of resistance is around 122.2350 and 122.5175, while 1st support hits today at 121.7250 and below there at 121.4975.