The most the bull camp can hope for is a temporary extension of sideways consolidation on the charts. Rising fear of a political and economic debacle in Greece, knock-on slowing from Russia and hawkish US Fed expectations should leave the Euro in a downward track on its charts. Resistance in the March Euro is seen at the recent highs of 1.2237 and traders should consider selling rallies in anticipation of fresh lower lows ahead.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. A negative signal for trend short-term was given on a close under the 9-bar moving average. The downside closing price reversal on the daily chart is somewhat negative. The market’s close below the pivot swing number is a mildly negative setup. The next downside target is 121.3625. The next area of resistance is around 122.1849 and 122.5825, while 1st support hits today at 121.5750 and below there at
121.3625