The September Euro was unable to sustain a sharp upside move during Asian trading, but is still managing to hold onto moderate gains in spite of thin holiday markets throughout the region. Yesterday’s Euro Zone GDP data showed modest signs of growth, and with a quiet news day from most of the EU should help the Euro maintain a positive tone coming into this morning’s trading. Global risk appetites remain lukewarm at best, so the Euro may need to see in-line to sluggish results from this morning’s US data in order to hold onto early gains through the balance of the session. A strong upside move may be difficult at best with the market focusing on other regions of the globe, but the Euro should hold onto enough support to remain in positive territory through today’s trading. The September Euro should find decent support around the 132.62 area later this morning, and will be looking for stronger global risk appetites in order to build upon these overnight gains.
Technical Outlook
EUR (SEP): Momentum studies trending lower at mid-range should accelerate a move lower if support levels are taken out. The market’s short-term trend is negative as the close remains below the 9-day moving average. It is a slightly negative indicator that the close was lower than the pivot swing number. The next downside target is 132.1550. The next area of resistance is around 132.7900 and 133.0350, while 1st support hits today at 132.3500 and below there at 132.1550.