The Euro bulls have to be discouraged as a generally favorable sweep of up-beat Euro zone economic results overnight have been largely ignored! In fact, some might suggest that the data overnight highlights an economic condition that is not as dismal as recent Euro price action would seem to suggest. However, ongoing uncertainty from Russia in the wake of the renewed slide in their currency looks to leave significant resistance hanging over the Euro. In fact, even minimally positive US scheduled data later this morning could raise the macro-economic bar on the Euro again and that leaves extremely formidable resistance on the charts up at 1.1388.
Technical Outlook: Daily stochastics are showing positive momentum from oversold levels, which should reinforce a move higher if near term resistance is taken out. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. The daily closing price reversal up is a positive indicator that could support higher prices. The close over the pivot swing is a somewhat positive setup. The next upside target is 114.2800. The next area of resistance is around 113.7800 and 114.2800, while 1st support hits today at
112.7200 and below there at 112.1600.