As mentioned already Euro zone economic news released this morning wasa mixed bag for some, while others only see evidence of slowing from today’s numbers. The positive news came from a fresh record low German unemployment reading, with softer Euro zone inflation results, a rise in Euro zone unemployed and the talk of a possible terrorism incident in Paris leaving the Euro under pressure to start today. The Euro is technically oversold, but the fundamentals continue to favor the bear camp. Down-trend channel resistance is seen up at 119.04 today but that resistance declines to 118.84 on Thursday.
Technical Outlook: The market was pushed to a new contract low. Daily stochastics are trending lower but have declined into oversold territory. A negative signal for trend short-term was given on a close under the 9-bar moving average. The market tilt is slightly negative with the close under the pivot. The next downside objective is now at 118.3225. With a reading under 20, the 9-day RSI indicates the market is extremely oversold. The next area of resistance is around 119.4249 and 120.0225, while 1st support hits today at 118.5750 and below there at 118.3225.