While the Dollar has shown some weakness the Euro hasn’t been able to rise up and away from its recent consolidation lows. With reports of calm returning to parts of the Ukraine, China offering up fiscal stimulus and equities registering optimism around the globe, one might have expected the Euro to have mounted some form of recovery effort on its charts. Apparently the market wasn’t overly impressed with news that French Consumer confidence reached its highest level in 3 years and that the Germans were poised to approve the Greek debt extension. We think the sellers are facing increased risk but we also don’t see the Euro mounting anything more than a modest recovery to initial resistance up at 1.1452.
Technical Outlook: Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. The market’s short-term trend is negative as the close remains below the 9-day moving average. The upside daily closing price reversal gives the market a bullish tilt. It is a mildly bullish indicator that the market closed over the pivot swing number. The next downside target is now at 112.6375. The next area of resistance is around 113.7950 and 114.0575, while 1st support hits today at 113.0850 and below there at 112.6375.