Already on the defensive from positive signs out of Washington, the Euro is finding fresh headwinds fromtheir side of the Atlantic this morning. While the headline German ZEW survey number came in higher thanexpected, a surprising decline in the current conditions reading put the Euro under pressure as strength from the”core” EU has underpinned its recent uptrend. Improving global risk sentiment and the positive vibes coming outof the peripheral EU may not be of much help to the Euro, as the late September lows look to be in jeopardy. TheDecember Euro may find near-term support around the 134.72 area, and needs positive news from out of theirregion in order to relieve this current pressure.
Technical Outlook
EUR (DEC): Momentum studies trending lower at mid-range should accelerate a move lower ifsupport levels are taken out. The market’s short-term trend is positive on the close above the 9-day movingaverage. It is a mildly bullish indicator that the market closed over the pivot swing number. The next downsideobjective is 135.1650. The next area of resistance is around 135.9300 and 136.2450, while 1st support hits todayat 135.3900 and below there at 135.1650.